Warner Bros (WBD)
NASDAQ:WBD
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Warner Bros
(NASDAQ:WBD)
Select Model
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Rating:62Neutral
Price Target:
$30.00
▲(8.89% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by improved profitability and sustained positive free cash flow, supported by generally constructive technical momentum and upbeat streaming/theatrical commentary from the earnings call. These positives are materially tempered by a very high P/E valuation and continued revenue softness with multi-year volatility in operating performance.
Positive Factors
Franchise & box‑office strength
Consistent theatrical outperformance signals durable IP and franchise health. Reliable high‑grossing releases bolster downstream licensing, merchandising, and streaming window economics, strengthening long‑term monetization and reducing reliance on any single distribution channel.
Negative Factors
Revenue softness and secular headwinds
A multi‑year softening in top line and secular pressure on linear businesses undermine long‑term margin sustainability and cashflow upside. Even with profit recovery, persistent revenue declines limit operating leverage and increase dependency on pricing or cost cuts to sustain earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise & box‑office strength
Consistent theatrical outperformance signals durable IP and franchise health. Reliable high‑grossing releases bolster downstream licensing, merchandising, and streaming window economics, strengthening long‑term monetization and reducing reliance on any single distribution channel.
Read all positive factors
Warner Bros (WBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.32B
Dividend YieldN/A
Average Volume (3M)27.88M
Price to Earnings (P/E)98.1
Beta (1Y)1.29
Revenue Growth-4.29%
EPS GrowthN/A
CountryUS
Employees35,000
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.10
Shares Outstanding2,479,929,400
10 Day Avg. Volume23,034,033
30 Day Avg. Volume27,884,937
Financial Highlights & Ratios
PEG Ratio-0.92
Price to Book (P/B)1.99
Price to Sales (P/S)1.91
P/FCF Ratio23.10
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue2.58
Enterprise Value/Gross Profit6.40
Enterprise Value/Ebitda5.94
Forecast
1Y Price Target
$29.75Price Target Upside7.99% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$37.43B
Warner Bros Business Overview & Revenue Model
Company Description
Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produc...
How the Company Makes Money
Warner Bros. Discovery generates revenue through multiple key streams. Primarily, the company earns money from content licensing and distribution, allowing its films and television shows to be aired on various platforms, including third-party netw...
Warner Bros Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business areas like film, TV, and streaming, highlighting which segments drive growth and profitability.
Analyzes income from different business areas like film, TV, and streaming, highlighting which segments drive growth and profitability.
Data provided by:
The Fly
The FlyWarner Bros Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized strong creative and commercial momentum across studios, HBO/HBO Max streaming scale and subscriber targets, improved advertising trends, and sports/event engagement — balanced against persistent secular pressures in linear, an underwhelming recent games launch with a thin near-term pipeline, and investor focus on leverage around the Discovery Global separation. Management framed the highlights as durable and positioned for further monetization (price, ads, share enforcement) and believes Discovery Global's leverage profile is sustainable.Positive Updates
Box Office and Film Slate Outperformance
Warner Bros. Motion Picture Group delivered seven consecutive films opening > $40,000,000, spent 16 total weeks atop the global box office, had nine films debut at #1, won nine Golden Globe Awards, and is up for 30 Academy Awards. The recent original films generated over $160,000,000 at the global box office in two weeks, including an $83,000,000 opening weekend.
Negative Updates
Secular Headwinds and Network Challenges
Management acknowledged persistent secular headwinds affecting linear TV and some parts of the business, and noted that international and domestic ad trends vary by region. CNN experienced ad sales headwinds earlier in the period (though audience uptick was later noted).
Read all updates
Q4-2025 Updates
Positive
Negative
Box Office and Film Slate Outperformance
Warner Bros. Motion Picture Group delivered seven consecutive films opening > $40,000,000, spent 16 total weeks atop the global box office, had nine films debut at #1, won nine Golden Globe Awards, and is up for 30 Academy Awards. The recent original films generated over $160,000,000 at the global box office in two weeks, including an $83,000,000 opening weekend.
Read all positive updates
Company Guidance
Management's guidance emphasized streaming scale and spin‑off financials: HBO Max is on track to surpass 140 million total streaming subscribers by the end of Q1 2026 and to exceed 150 million by year‑end 2026, with streaming profits targeted to roughly triple by 2030; Discovery Global is expected to emerge with roughly 3.3x net leverage (proxy allowance of $0–$2.0 billion of flexibility) and likely single‑B to low double‑B ratings. They expect international ad sales to be flat to slightly up in 2026 and reported sequential advertising improvement into Q1, while U.S. linear networks delivered ~30% of prime‑time cable viewing; management also cited eight price increases to date (a 63% increase in value noted), Winter Games‑driven >50% growth in European linear hours and a >3x streaming audience lift, and strong theatrical KPIs (seven consecutive $40M+ openings, 16 weeks atop the global box office, nine #1 debuts, and >$160M box office in two weeks including an $83M opening weekend).Warner Bros Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
76
Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 37.30B | 39.32B | 41.32B | 33.82B | 12.19B |
| Gross Profit | 10.51B | 16.35B | 16.80B | 13.38B | 7.57B |
| EBITDA | 9.42B | 11.61B | 22.37B | 14.17B | 7.15B |
| Net Income | 727.00M | -11.31B | -3.13B | -7.37B | 1.01B |
Balance Sheet | |||||
| Total Assets | 100.08B | 104.56B | 122.76B | 134.00B | 34.43B |
| Cash, Cash Equivalents and Short-Term Investments | 4.57B | 5.31B | 3.78B | 3.73B | 3.90B |
| Total Debt | 32.57B | 39.51B | 43.67B | 49.00B | 14.76B |
| Total Liabilities | 62.92B | 69.62B | 76.28B | 85.33B | 21.03B |
| Stockholders Equity | 35.92B | 34.04B | 45.23B | 47.09B | 11.60B |
Cash Flow | |||||
| Free Cash Flow | 3.09B | 4.43B | 6.16B | 3.32B | 2.42B |
| Operating Cash Flow | 4.32B | 5.38B | 7.48B | 4.30B | 2.80B |
| Investing Cash Flow | -546.00M | -349.00M | -1.26B | 3.52B | -56.00M |
| Financing Cash Flow | -4.87B | -3.75B | -5.84B | -7.74B | -853.00M |
Warner Bros Technical Analysis
Positive
27.55
Price Trends
27.77
Negative
27.34
Positive
21.39
Positive
Market Momentum
-0.13
Negative
50.13
Neutral
64.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WBD, the sentiment is Positive. The current price of 27.55 is above the 20-day moving average (MA) of 27.38, below the 50-day MA of 27.77, and above the 200-day MA of 21.39, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 64.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WBD.
Warner Bros Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $419.64B | 36.11 | 43.25% | ― | 15.49% | 35.54% | |
70 Outperform | $14.53B | 31.10 | 12.52% | 0.76% | -16.36% | 29.53% | |
68 Neutral | $175.70B | 21.11 | 11.35% | 1.10% | 3.61% | 152.34% | |
68 Neutral | $24.33B | 34.54 | 16.22% | 0.75% | 14.91% | 9.30% | |
64 Neutral | $24.33B | 30.69 | 16.22% | 0.85% | 14.91% | 9.30% | |
62 Neutral | $68.32B | 98.11 | 2.05% | ― | -4.29% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
WBD
Warner Bros
27.55
19.45
240.12%
NWSA
News Corp
24.89
-0.51
-1.99%
DIS
Walt Disney
99.18
14.88
17.65%
NFLX
Netflix
99.39
7.27
7.90%
FOXA
Fox
60.22
11.17
22.77%
FOX
Fox
54.48
8.95
19.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.