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Warner Bros
(NASDAQ:WBD)
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Rating:55Neutral
Price Target:
$28.00
▲(1.93% Upside)
Action:Reiterated
Date:05/09/26
Overall score reflects mixed fundamentals: meaningful cash generation and improved reported leverage are offset by sharp TTM revenue contraction and a return to net losses. The latest earnings call was a positive offset due to accelerating streaming scale and improved streaming profitability, while technical signals are neutral and valuation remains challenged by negative earnings and no dividend support.
Positive Factors
Streaming scale & subscriber growth
Reaching global scale (140M+ subs, target >150M) materially improves unit economics and monetization levers (ARPU, ads, bundling). A largely complete international rollout increases addressable market and creates durable recurring revenue growth potential and higher lifetime value per subscriber.
Negative Factors
TTM revenue decline & net losses
A ~20% TTM revenue decline and negative net margin create volatility in profitability and limit durable returns on equity. Persistent revenue weakness undermines margin sustainability, constrains reinvestment capacity, and raises execution risk for achieving targeted studio and streaming earnings trajectories.
Read all positive and negative factors
Positive Factors
Negative Factors
Streaming scale & subscriber growth
Reaching global scale (140M+ subs, target >150M) materially improves unit economics and monetization levers (ARPU, ads, bundling). A largely complete international rollout increases addressable market and creates durable recurring revenue growth potential and higher lifetime value per subscriber.
Read all positive factors
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 (WBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.22B
Dividend YieldN/A
Average Volume (3M)20.99M
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth-2.78%
EPS Growth84.26%
CountryUS
Employees35,000
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.69
Shares Outstanding2,507,136,700
10 Day Avg. Volume26,907,992
30 Day Avg. Volume20,994,749
Financial Highlights & Ratios
PEG Ratio-0.94
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/Revenue2.55
Enterprise Value/Gross Profit6.15
Enterprise Value/Ebitda7.50
Forecast
1Y Price Target
$29.35Price Target Upside6.84% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)-1.24
Revenue Forecast (FY)$36.88B
Warner Bros Business Overview & Revenue Model
Company Description
Warner Bros. Discovery, Inc. operates as a prominent global media and entertainment conglomerate. Its operations are structured across three key divisions: Studios, Network, and Direct-to-Consumer (DTC). The Studios segment is responsible for the ...
How the Company Makes Money
WBD primarily makes money by monetizing its content and media brands through multiple distribution channels. Key revenue streams include: (1) Linear television networks: WBD earns affiliate/subscriber fees from pay-TV distributors (e.g., cable, sa...
Warner Bros Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and strategic narrative: strong streaming subscriber growth and a notable profitability turnaround at HBO Max, major content and awards momentum at Warner Bros., improved sports and network engagement metrics, and strategic progress validated by shareholder approval of the Paramount Skydance transaction. Offsetting these positives are near-term cash and below-the-line costs tied to the sale/separation process, ongoing linear TV disruption and network revenue/EBITDA pressure, and the need to prove profitable sports streaming models. On balance, the positives (sizable subscriber and profit gains, content strength and international expansion) materially outweigh the near-term financial and structural headwinds.Positive Updates
HBO Max Global Expansion and Subscriber Growth
Launched HBO Max in the U.K., Germany, Italy and Ireland; exceeded guidance of over 140 million total subscribers by end of Q1 and expect to finish the year with more than 150 million subscribers globally; added almost 50 million subs since the 2022 starting cohort.
Negative Updates
Negative Free Cash Flow and Transaction-Related Cash Impact
Material negative cash impact from the sale/separation process continues: roughly $100 million of negative cash impact in Q1 and expectations for further negative cash flow in 2026 due to advisory fees, bridge interest, tax leakage and other sale-related expenses.
Read all updates
Q1-2026 Updates
Positive
Negative
HBO Max Global Expansion and Subscriber Growth
Launched HBO Max in the U.K., Germany, Italy and Ireland; exceeded guidance of over 140 million total subscribers by end of Q1 and expect to finish the year with more than 150 million subscribers globally; added almost 50 million subs since the 2022 starting cohort.
Read all positive updates
Company Guidance
Management reiterated several forward-looking targets and timing expectations: HBO Max exceeded its Q1 guidance of "over 140 million" total subscribers and the company now expects to finish FY‑2026 with more than 150 million global subscribers (having added almost 50 million since starting from mid‑90 millions), with subscriber‑related revenue growth expected to accelerate in Q2 and through the rest of the year; JB said streaming moved from losing over $2 billion to generating $1.4 billion last year (management characterized this as roughly a $3–4 billion turnaround). They reiterated WB Studios’ goal of at least $3 billion in annual adjusted EBITDA and noted a heavy slate (14 films in 2026, up to 18 in 2027). Other cited metrics included The Pitt averaging >20 million viewers/episode and A Knight of the Seven Kingdoms averaging ~36 million/episode, Warner Bros. earning 11 Oscars, CNN delivering +30% YoY minutes in Q1, Milano‑Cortina linear viewership +50% vs. Beijing 2022 with streaming hours >2x and viewers ~3x, a record March Madness broadcast on TNT Sports, a 16% sequential improvement in general‑entertainment delivery trends vs. Q4, double‑digit prime‑time growth on TLC/TBS, and near‑term cash headwinds from separation/transaction activity (roughly $100 million negative cash impact in Q1 and elevated transaction‑related cash outflows expected through 2026); the proposed sale terms were $31 per share and shareholders approved the transaction two weeks ago.Warner Bros Financial Statement Overview
Summary
Income Statement
43
Neutral
Balance Sheet
68
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.21B | 37.30B | 39.32B | 41.32B | 33.82B | 12.19B |
| Gross Profit | 15.43B | 10.51B | 16.35B | 16.80B | 13.38B | 7.57B |
| EBITDA | 12.66B | 9.42B | 11.61B | 22.37B | 14.17B | 7.15B |
| Net Income | -1.74B | 727.00M | -11.31B | -3.13B | -7.37B | 1.01B |
Balance Sheet | ||||||
| Total Assets | 97.84B | 100.08B | 104.56B | 122.76B | 134.00B | 34.43B |
| Cash, Cash Equivalents and Short-Term Investments | 3.26B | 4.57B | 5.31B | 3.78B | 3.73B | 3.90B |
| Total Debt | 32.47B | 32.57B | 39.51B | 43.67B | 49.00B | 14.76B |
| Total Liabilities | 64.13B | 62.92B | 69.62B | 76.28B | 85.33B | 21.03B |
| Stockholders Equity | 32.58B | 35.92B | 34.04B | 45.23B | 47.09B | 11.60B |
Cash Flow | ||||||
| Free Cash Flow | 2.31B | 3.09B | 4.43B | 6.16B | 3.32B | 2.42B |
| Operating Cash Flow | 3.56B | 4.32B | 5.38B | 7.48B | 4.30B | 2.80B |
| Investing Cash Flow | -1.27B | -546.00M | -349.00M | -1.26B | 3.52B | -56.00M |
| Financing Cash Flow | -3.10B | -4.87B | -3.75B | -5.84B | -7.74B | -853.00M |
Warner Bros Technical Analysis
Negative
27.47
Price Trends
26.97
Negative
27.36
Negative
25.65
Positive
Market Momentum
-0.03
Negative
47.07
Neutral
60.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WBD, the sentiment is Negative. The current price of 27.47 is above the 20-day moving average (MA) of 26.75, above the 50-day MA of 26.97, and above the 200-day MA of 25.65, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 60.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $166.20B | 15.30 | 10.29% | 1.10% | 4.02% | 27.66% | |
74 Outperform | $21.47B | 12.64 | 14.86% | 0.85% | 0.60% | -5.58% | |
72 Outperform | $312.40B | 23.48 | 49.24% | ― | 18.57% | 45.93% | |
70 Outperform | $21.47B | 12.64 | 14.86% | 0.75% | 0.60% | -5.58% | |
65 Neutral | $14.75B | 39.12 | 4.88% | 0.76% | -6.39% | -12.34% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $67.22B | -38.86 | -4.94% | ― | -2.78% | 84.26% |
* Communication Services Sector Average
WBD
Warner Bros
26.81
15.69
141.10%
NWSA
News Corp
25.78
-3.61
-12.27%
DIS
Walt Disney
95.71
-25.51
-21.05%
NFLX
Netflix
74.19
-54.30
-42.26%
FOXA
Fox
54.13
-0.48
-0.88%
FOX
Fox
48.42
-1.82
-3.63%
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.