Warner Bros. Discovery (NASDAQ:WBD) Releases Quarterly Earnings Results, Misses Expectations By $1.06 EPS

Key Points

• Warner Bros. Discovery reported a ($1.17) loss per share versus the consensus ($0.11), missing by $1.06 while revenue came in roughly inline at $8.89 billion; the headline loss included a largely non‑cash $2.8B termination fee tied to M&A activity.
• HBO Max’s global expansion is driving stronger streaming revenue and engagement, supporting the growth thesis, but intensifying competition (e.g., Disney) and regulatory uncertainty around the proposed merger leave the outlook mixed.
• Company insiders have been heavy sellers recently: CEO David Zaslav and CFO Gunnar Wiedenfels sold ~4.0M and ~0.62M shares respectively, with insiders offloading over 8.2M shares (~$230.7M) in the past 90 days.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported ($1.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($1.06), FiscalAI reports. The firm had revenue of $8.89 billion for the quarter, compared to the consensus estimate of $8.89 billion. Warner Bros. Discovery had a return on equity of 1.98% and a net margin of 1.95%.

Warner Bros. Discovery Stock Performance

Warner Bros. Discovery stock traded down $0.02 during mid-day trading on Wednesday, reaching $27.20. The company had a trading volume of 20,118,508 shares, compared to its average volume of 24,030,143. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.87. Warner Bros. Discovery has a 52 week low of $8.06 and a 52 week high of $30.00. The company has a 50 day moving average of $27.56 and a 200-day moving average of $26.53. The firm has a market cap of $68.18 billion, a price-to-earnings ratio of 93.80 and a beta of 1.57.

Trending Headlines about Warner Bros. Discovery

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

• Positive Sentiment: Streaming momentum: HBO Max's global expansion drove better‑than‑expected streaming revenue and subscriber/engagement gains, supporting the growth thesis for WBD’s streaming business. Warner Bros Discovery's streaming growth accelerates
• Positive Sentiment: Deal progress / studio slate: Paramount and Warner teams continue to discuss integration and a combined film slate (30 films referenced), which could point to future scale/synergies if the merger closes. Paramount CEO reiterates 30‑film slate
• Neutral Sentiment: Revenue in line: WBD reported $8.89B in revenue, roughly matching consensus, which tempers concerns about top‑line deterioration even as linear TV weakness persists. First Quarter 2026 Results (PR Newswire)
• Negative Sentiment: Big EPS miss: WBD reported a ($1.17) loss per share versus consensus ($0.11), a sizable surprise that pressured the stock given implications for near‑term profitability metrics. Q1 2026 Press Release / Earnings
• Negative Sentiment: One‑time M&A charge: The reported $2.9B Q1 loss includes a $2.8B termination fee tied to the Paramount/Netflix board reshuffle — a large non‑cash item that drove the headline loss and adds volatility around reported EPS. WBD Sees $2.9 Billion Q1 Loss (Deadline)
• Negative Sentiment: Regulatory uncertainty: An FCC commissioner called for rigorous review of foreign investment in the proposed merger, raising the risk that the deal faces delays or tougher conditions. FCC commissioner seeks review of foreign investment
• Negative Sentiment: Competitive pressure: Disney’s stronger‑than‑expected quarter lifted peer sentiment for Disney while highlighting near‑term competition in streaming, which can amplify downside for WBD on relative performance days. Disney stock outperformance piece

Analyst Ratings Changes

Several research firms recently issued reports on WBD. Raymond James Financial reaffirmed an "underperform" rating on shares of Warner Bros. Discovery in a report on Friday, February 27th. Huber Research downgraded shares of Warner Bros. Discovery from a "strong-buy" rating to a "strong sell" rating in a report on Friday, February 27th. UBS Group increased their price target on shares of Warner Bros. Discovery from $20.00 to $30.00 and gave the company a "neutral" rating in a report on Wednesday, January 28th. Rothschild & Co Redburn set a $31.00 price target on shares of Warner Bros. Discovery and gave the company a "neutral" rating in a report on Tuesday, February 17th. Finally, Benchmark reissued a "hold" rating on shares of Warner Bros. Discovery in a report on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, thirteen have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $26.30.

Insider Activity at Warner Bros. Discovery

In other news, CFO Gunnar Wiedenfels sold 617,580 shares of Warner Bros. Discovery stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $28.25, for a total transaction of $17,446,635.00. Following the sale, the chief financial officer directly owned 691,570 shares in the company, valued at approximately $19,536,852.50. The trade was a 47.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO David Zaslav sold 4,004,149 shares of the company's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $28.26, for a total transaction of $113,157,250.74. Following the completion of the sale, the chief executive officer directly owned 7,200,627 shares in the company, valued at approximately $203,489,719.02. The trade was a 35.74% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 8,206,827 shares of company stock worth $230,674,025 in the last ninety days. Company insiders own 1.80% of the company's stock.

Institutional Trading of Warner Bros. Discovery

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Swiss RE Ltd. bought a new stake in Warner Bros. Discovery in the fourth quarter valued at about $26,000. JPL Wealth Management LLC bought a new stake in Warner Bros. Discovery in the third quarter valued at about $33,000. Advocate Investing Services LLC bought a new stake in Warner Bros. Discovery in the fourth quarter valued at about $49,000. Garton & Associates Financial Advisors LLC bought a new stake in Warner Bros. Discovery in the fourth quarter valued at about $59,000. Finally, Itau Unibanco Holding S.A. increased its stake in Warner Bros. Discovery by 54.5% in the fourth quarter. Itau Unibanco Holding S.A. now owns 2,095 shares of the company's stock valued at $60,000 after acquiring an additional 739 shares during the period. Institutional investors own 59.95% of the company's stock.

About Warner Bros. Discovery

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.

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