The core business is deteriorating faster than expected, with Studios and Linear Networks both declining sharply. The Streaming segment's strong growth is not enough to offset the declines. The Paramount merger overhang and regulatory delay create a binary event; traders should watch for any updates on the legal proceedings or a potential deal termination. The stock is likely to trade down on the revenue miss and weak guidance.
Price Chart
Executive Summary
Warner Bros. Discovery reported Q2 2026 results with total revenue of $8.7 billion, down 12% ex-FX year-over-year, significantly missing the $9.21B consensus. Adjusted EBITDA fell 6% ex-FX to $1.9B, and GAAP EPS was $0.06, though the Street consensus was $-0.13. The miss was driven by a 39% ex-FX decline in Studios revenue and a 17% ex-FX decline in Global Linear Networks, partially offset by 10% ex-FX growth in Streaming. The company also disclosed that the Paramount merger closing is on hold until legal proceedings conclude or June 1, 2027, adding uncertainty to the thesis.
Key Financial Metrics
Key Facts
- Total revenue of $8.717B declined 12% ex-FX YoY, missing the $9.21B consensus.
- Studios segment revenue fell 39% ex-FX to $2.328B, with Adjusted EBITDA collapsing 89% ex-FX to $96M.
- Global Linear Networks revenue declined 17% ex-FX to $3.991B, with advertising down 27% ex-FX due to the absence of the NBA.
- Streaming segment was a bright spot, with revenue up 10% ex-FX to $3.079B and Adjusted EBITDA surging 63% ex-FX to $512M.
- The Paramount merger closing is on hold until the earlier of five days after legal proceedings are complete or June 1, 2027.
- Net leverage remained at 3.4x with $29.7B in net debt, and free cash flow fell 19% to $572M, impacted by $350M in transaction costs.
Financial Impact
Revenue miss of ~$493M vs consensus; Studios EBITDA declined by $767M YoY; free cash flow down $130M YoY.
Risk Factors
- Paramount merger may fail to close, leaving WBD with a declining standalone business.
- Continued secular decline in linear TV advertising and subscriber losses.
- Studios segment volatility from film slate underperformance.
- High net leverage of 3.4x limits financial flexibility.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437107-26-000072 |
| Document: wbd2q26earningsrelease08.htm | 0001437107-26-000072 |
| Document: wbd2q26shareholderletter.htm | 0001437107-26-000072 |
| Document: 0001437107-26-000072-index-headers.html | 0001437107-26-000072 |
| Document: 0001437107-26-000072.txt | 0001437107-26-000072 |
| 8-K Data (Synthetic) | 0001437107-26-000072 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 16, 2026 4w ago | Insider Cluster | $28.07 $30.76 | ▲ +9.58% | ▲ +7.02% | — |
Sep 14, 2026 5w ago | Insider Cluster | $28.10 $30.80 | ▲ +9.61% | ▲ +9.50% | — |
Sep 12, 2026 5w ago | Insider Cluster | $28.10 $30.80 | ▲ +9.61% | ▲ +9.50% | — |
Sep 11, 2026 5w ago | 144 | $28.04 $27.80 | ▼ −0.86% | ▼ −0.63% | — |
Sep 10, 2026 5w ago | Insider Cluster | $28.04 $27.80 | ▼ −0.86% | ▼ −0.63% | — |
Sep 4, 2026 6w ago | Insider Cluster | $28.12 $28.03 | ▼ −0.32% | ▲ +0.80% | — |
Sep 3, 2026 6w ago | 144 | $28.25 $28.10 | ▼ −0.53% | ▲ +0.68% | — |
Sep 3, 2026 6w ago | 144 | $28.37 $28.04 | ▼ −1.16% | ▼ −0.01% | — |
Aug 15, 2026 9w ago | Insider Cluster | $27.93 $28.70 | ▲ +2.76% | ▲ +3.95% | — |
Aug 14, 2026 9w ago | Insider Cluster | $27.99 $28.55 | ▼ −2.00% | ▼ −3.37% | — |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access