Warner Bros. Discovery (NASDAQ:WBD) Posts Quarterly Earnings Results, Misses Expectations By $1.07 EPS

Warner Bros. Discovery (NASDAQ:WBD) posted its quarterly earnings results on Wednesday. The company reported ($1.17) EPS for the quarter, missing the consensus estimate of ($0.10) by ($1.07), FiscalAI reports. The company had revenue of $8.89 billion for the quarter, compared to analyst estimates of $8.89 billion. Warner Bros. Discovery had a negative return on equity of 4.77% and a negative net margin of 4.67%.The business’s revenue for the quarter was down 1.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.18) earnings per share.

Here are the key takeaways from Warner Bros. Discovery’s conference call:

• HBO Max expanded into the U.K., Germany, Italy and Ireland and WBD says total subscribers have exceeded 140 million with a target of >150 million by year-end, while subscriber-related revenue and streaming profitability (from a ~-$2B loss to $1.4B profit last year) are accelerating.
• Warner Bros. Studios reported a creative resurgence—11 Oscars, strong box office results, and a heavy upcoming slate (14 films in 2026, up to 18 in 2027)—supporting management’s goal of at least $3 billion in annual WB Studios adjusted EBITDA.
• Management says linear networks are resilient amid disruption, citing sports and news gains (Olympics viewership +50% vs. 2022, record March Madness, and CNN minutes +30%), but acknowledges the broader pay-TV transition remains a challenge.
• Shareholders approved the proposed Paramount Skydance acquisition at $31 per share, which management describes as compelling value and strategically complementary to WBD’s global streaming ambitions.
• WBD warned of ongoing separation- and deal-related cash costs that will weigh on free cash flow in 2026 (Q1 cash impact ~$100 million), including advisory fees, bridge interest and tax leakage tied to the sale process.

Warner Bros. Discovery Stock Down 0.0%

WBD stock opened at $27.11 on Monday. The firm has a market cap of $67.96 billion, a PE ratio of -38.73 and a beta of 1.57. The company has a fifty day simple moving average of $27.48 and a 200 day simple moving average of $26.66. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.92. Warner Bros. Discovery has a 1 year low of $8.82 and a 1 year high of $30.00.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on WBD. Deutsche Bank Aktiengesellschaft cut shares of Warner Bros. Discovery from a “buy” rating to a “hold” rating and boosted their price target for the company from $29.50 to $31.00 in a report on Friday, February 27th. UBS Group lifted their price objective on Warner Bros. Discovery from $30.00 to $31.00 and gave the company a “neutral” rating in a research report on Thursday. Sanford C. Bernstein upped their target price on Warner Bros. Discovery from $23.50 to $27.75 and gave the stock a “market perform” rating in a research report on Tuesday, February 24th. TD Cowen raised their price target on Warner Bros. Discovery from $22.00 to $26.00 and gave the stock a “hold” rating in a research note on Friday, February 27th. Finally, Rothschild & Co Redburn set a $31.00 price target on Warner Bros. Discovery and gave the company a “neutral” rating in a report on Tuesday, February 17th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, thirteen have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $26.36.

Key Headlines Impacting Warner Bros. Discovery

Here are the key news stories impacting Warner Bros. Discovery this week:

• Positive Sentiment: Streaming remains a bright spot, with Warner Bros. Discovery topping 140 million subscribers and management highlighting strong momentum in its direct-to-consumer business. Warner Bros. Discovery Earnings Call Highlights Streaming Surge
• Positive Sentiment: HBO Max was described by David Zaslav as likely the company’s “most important asset,” reinforcing the value of WBD’s streaming platform as a key long-term driver. David Zaslav Says HBO Max Is “Probably” Warner Bros. Discovery’s “Most Important Asset”
• Neutral Sentiment: Warner Bros. TV announced special podcast episodes for The Pitt, a small content-related update that may help engagement but is unlikely to materially move the stock. Warner Bros TV Announces Special Podcast Episodes For “The Pitt”
• Neutral Sentiment: Guggenheim reiterated a neutral rating, signaling analysts are waiting for clearer evidence that earnings and the strategic outlook are improving. Guggenheim Reaffirms Neutral Rating on Warner Bros. Discovery
• Negative Sentiment: Q1 results missed expectations, with WBD posting a $1.17 per-share loss versus a much smaller expected loss, while revenue came in just below estimates and declined year over year. Warner Bros. Discovery reports Q1 CY2026 in line with expectations
• Negative Sentiment: The quarter was heavily burdened by a $2.8 billion Netflix termination fee and restructuring costs, which drove a roughly $2.9 billion net loss and overshadowed operational progress. Warner Bros. Discovery posts wider Q1 loss driven by $2.8B Netflix termination fee
• Negative Sentiment: Media coverage focused on the large loss and weaker-than-expected results, reinforcing concerns that near-term earnings are still being weighed down by one-time and integration-related charges. Warner Bros. Discovery Logs $2.92 Billion Loss Tied to Netflix Termination Fee

Insider Buying and Selling

In other Warner Bros. Discovery news, Director Paul A. Gould sold 600,000 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $27.35, for a total transaction of $16,410,000.00. Following the sale, the director directly owned 244,357 shares in the company, valued at approximately $6,683,163.95. This trade represents a 71.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Bruce Campbell sold 41,784 shares of the business’s stock in a transaction on Monday, March 9th. The shares were sold at an average price of $27.82, for a total transaction of $1,162,430.88. Following the completion of the sale, the insider directly owned 604,666 shares in the company, valued at $16,821,808.12. This represents a 6.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 8,206,827 shares of company stock valued at $230,674,025. 1.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in WBD. Compound Planning Inc. raised its stake in Warner Bros. Discovery by 64.4% in the fourth quarter. Compound Planning Inc. now owns 25,241 shares of the company’s stock valued at $727,000 after purchasing an additional 9,886 shares in the last quarter. Corient Private Wealth LLC increased its stake in Warner Bros. Discovery by 33.4% in the fourth quarter. Corient Private Wealth LLC now owns 335,890 shares of the company’s stock valued at $9,680,000 after acquiring an additional 84,037 shares during the last quarter. Ameriflex Group Inc. raised its position in Warner Bros. Discovery by 22.8% during the fourth quarter. Ameriflex Group Inc. now owns 3,108 shares of the company’s stock valued at $90,000 after purchasing an additional 578 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its position in Warner Bros. Discovery by 36.2% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 135,209 shares of the company’s stock valued at $3,897,000 after purchasing an additional 35,945 shares in the last quarter. Finally, Virtue Capital Management LLC bought a new stake in Warner Bros. Discovery during the fourth quarter worth $1,348,000. 59.95% of the stock is owned by institutional investors and hedge funds.

Warner Bros. Discovery Company Profile

Warner Bros. Discovery (NASDAQ: WBD) is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.

The company’s core activities include film and television production and distribution through units such as Warner Bros.