Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Warner Bros. Discovery's Q2 FY2026 results were defined by the pending acquisition by Paramount Skydance (PSKY) at $31 per share, with closing delayed by antitrust lawsuits until at least June 2027. Streaming distribution revenue grew 12% ex‑currency on HBO Max expansion, but Studios revenue plunged 41% on tough film comps and linear advertising fell 22% due to the NBA's absence. The company turned an operating profit of $237 million from a loss last year, driven by cost cuts, yet net income collapsed 91% due to the absence of a prior‑year debt extinguishment gain. The outcome hinges on the PSKY merger closing, which faces legal challenges that could extend into 2027.
Revenue
$8.72B
-11.16% YoY
EPS (Diluted)
$0.06
-90.48% YoY
Operating Income
$237M
+228.11% YoY
Source: SEC XBRL
Warner Bros. Discovery (WBD) reported Q2 FY2026 revenue of $8.72B, down 11.2% year over year. Operating margin was 2.7%, against -1.9% a year earlier. WBD's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | -0.05 | -0.07 | Beat +30.0% |
| Dec 2025 | -0.10 | -0.03 | Miss -222.6% |
| Sep 2025 | -0.06 | -0.04 | Miss -43.9% |
| Jun 2025 | 0.63 | -0.21 | Beat +398.6% |
3 reported segments · SEC XBRL
Segment revenue totals $9.4B; with -$681M of reconciling items (corporate, unallocated and eliminations) it ties to the $8.72B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
In February 2026, WBD agreed to be acquired by PSKY for $31/share; stockholders approved the deal, but two lawsuits filed in July 2026 seek to block the merger, and defendants agreed not to close before June 1, 2027.
Source: 10-Q Item 2 MD&A
WBD recorded a $2.8B expense in Q1 2026 after terminating the Netflix merger agreement, paid by PSKY on WBD's behalf, which is reimbursable under certain scenarios if the PSKY merger fails.
Source: 10-Q Item 2 MD&A
Streaming distribution revenue grew 11% ex‑FX, driven by HBO Max global expansion and new distribution deals, partially offset by the impact of a domestic wholesale deal renewal in Q2 2025.
Source: 10-Q Item 2 MD&A
Studios content revenue decreased 41%, mainly due to a 46% drop in theatrical product revenue as the current quarter lacked hits like A Minecraft Movie and Sinners that boosted Q2 2025.
Source: 10-Q Item 2 MD&A
Global Linear Networks advertising revenue fell 27%, with the NBA's absence accounting for a $414M impact, alongside a 17% audience decline in domestic networks.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
The PSKY merger faces two antitrust lawsuits seeking to block the transaction, with an agreement not to close before June 1, 2027; failure to close could trigger up to $3B in termination fees and reimbursements.
Source: 10-Q Item 2 MD&A
Global Linear Networks segment revenues declined 17% in Q2, with domestic linear subscribers down 10% and advertising down 27%, trends expected to continue.
Source: 10-Q Income Statement (XBRL)
Debt to equity ratio of 1.93, with $32.0B in long-term debt, high interest expense, and reliance on future cash flows to service debt.
Source: 10-Q Balance Sheet (XBRL)
Cash and equivalents declined 31% YoY to $3.37B, operating cash flow YTD dropped 58.3% to $640M, and current ratio of 0.78 indicates potential difficulty meeting short-term obligations.
Source: 10-Q Cash Flow Statement (XBRL)
Studios Adjusted EBITDA fell 89% in Q2, driven by the timing and performance of film releases; the segment is inherently unpredictable and subject to large swings.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 8.72 $B | 9.81 $B | -11.16% |
Operating Income $M | 237.00 $M | -185.00 $M | +228.11% |
Net Income $B | 0.15 $B | 1.58 $B | -90.57% |
EPS (Basic) $ | 0.06 $ | 0.64 $ | -90.63% |
EPS (Diluted) $ | 0.06 $ | 0.63 $ | -90.48% |
SG&A Expense $B | 2.56 $B | 2.48 $B | +3.51% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
WBD reported a steep Q1 FY2026 loss with net income plunging to -$2.916B (vs. -$453M a year ago), driven by a massive operating loss of -$2.469B, negative operating cash flow, and a current ratio below 1, underscoring significant near-term financial pressure.
WBD returned to profitability in FY2025 with net income of $727M versus a loss of $11.3B in the prior year, while revenue declined 5.1% to $37.3B and long-term debt was reduced by $6.9B.
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