Warner Bros. Discovery (NASDAQ:WBD) Releases Quarterly Earnings Results, Misses Estimates By $0.19 EPS

Warner Bros. Discovery (NASDAQ:WBD) released its quarterly earnings results on Thursday. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.19), FiscalAI reports. The company had revenue of $9.46 billion for the quarter, compared to analysts’ expectations of $9.33 billion. Warner Bros. Discovery had a net margin of 1.28% and a return on equity of 1.34%. The business’s quarterly revenue was down 5.7% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.20) EPS.

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

• Warner Bros. Discovery described a creative renaissance — 9 films opened at No. 1 in 2025, the studio won major awards (including nine Golden Globes) and management highlighted a blockbuster 2027 slate (e.g., Minecraft 2, Batman Part 2, Superman).
• HBO Max has exceeded its prior target (surpassing 130 million subs) and management is guiding to >140 million by end of Q1 and >150 million by year-end, backed by five growth levers (content, penetration, product, retention, monetization).
• The board’s strategic review and sale process produced a materially higher outcome — management says the competitive process yielded a 63% increase in value versus the first offer as it pursues the planned Warner Bros./Discovery Global separation.
• Discovery Global is expected to start with roughly ~3.3x net leverage, which management calls sustainable and expects to translate to single‑B to low double‑B ratings, with a disclosed $0–2 billion potential debt allocation flexibility.
• Advertising and linear network trends improved sequentially — the Milano Cortina Olympics drove strong linear and streaming lifts, U.S. ad sales recovered after NBA headwinds, and international ad sales are described as flat‑to‑up, supporting near‑term revenue momentum.

Warner Bros. Discovery Stock Down 0.3%

WBD traded down $0.10 on Thursday, hitting $28.80. The company had a trading volume of 15,738,186 shares, compared to its average volume of 23,677,279. The stock has a market capitalization of $71.37 billion, a price-to-earnings ratio of 151.59 and a beta of 1.64. Warner Bros. Discovery has a 12-month low of $7.52 and a 12-month high of $30.00. The company has a debt-to-equity ratio of 0.90, a quick ratio of 1.07 and a current ratio of 1.07. The stock has a fifty day moving average price of $28.33 and a 200-day moving average price of $22.49.

Wall Street Analysts Forecast Growth

WBD has been the topic of several research analyst reports. UBS Group upped their price objective on Warner Bros. Discovery from $20.00 to $30.00 and gave the company a “neutral” rating in a research report on Wednesday, January 28th. Raymond James Financial upped their target price on shares of Warner Bros. Discovery from $22.00 to $25.00 and gave the stock an “outperform” rating in a research note on Friday, November 7th. Benchmark lifted their price target on shares of Warner Bros. Discovery from $30.00 to $32.00 and gave the company a “buy” rating in a research note on Thursday, January 15th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $29.50 price objective on shares of Warner Bros. Discovery in a research note on Monday, December 8th. Finally, Barrington Research cut Warner Bros. Discovery from an “outperform” rating to a “hold” rating in a report on Friday, December 5th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and thirteen have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $25.30.

Insider Activity

In related news, CFO Gunnar Wiedenfels sold 242,994 shares of the firm’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $29.50, for a total transaction of $7,168,323.00. Following the sale, the chief financial officer directly owned 918,940 shares of the company’s stock, valued at $27,108,730. This trade represents a 20.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Lori C. Locke sold 4,122 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $28.92, for a total transaction of $119,208.24. Following the sale, the chief accounting officer directly owned 100,962 shares in the company, valued at $2,919,821.04. The trade was a 3.92% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 262,116 shares of company stock valued at $7,665,481. Corporate insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Warner Bros. Discovery

Hedge funds and other institutional investors have recently made changes to their positions in the company. Swiss RE Ltd. purchased a new position in Warner Bros. Discovery during the fourth quarter worth about $26,000. JPL Wealth Management LLC purchased a new stake in shares of Warner Bros. Discovery in the 3rd quarter valued at $33,000. Advocate Investing Services LLC purchased a new position in Warner Bros. Discovery during the 4th quarter valued at about $49,000. Garton & Associates Financial Advisors LLC acquired a new stake in shares of Warner Bros. Discovery during the fourth quarter worth about $59,000. Finally, Itau Unibanco Holding S.A. boosted its stake in shares of 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 purchasing an additional 739 shares during the period. Hedge funds and other institutional investors own 59.95% of the company’s stock.

More Warner Bros. Discovery News

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

• Positive Sentiment: Paramount Skydance raised its offer to $31 per share and provided stronger equity backing, increasing the chance of a higher takeover price for WBD shareholders. Read More.
• Positive Sentiment: Streaming growth: HBO Max / Discovery+ added subscribers (near ~131–132M reported), which offsets some legacy decline and supports the strategic value of WBD’s streaming assets. Read More.
• Neutral Sentiment: WBD’s board says it still recommends the Netflix merger but confirmed Paramount’s revised proposal could be a “company superior proposal,” so the situation remains fluid — the company continues talks while the Netflix agreement remains in place. Read More.
• Negative Sentiment: Q4 earnings miss: WBD reported EPS of -$0.10 vs. expectations (~$0.09) and revenue down ~6% y/y (revenue roughly in line with consensus), highlighting weakness in linear TV and studios that weighed on profitability. That earnings shortfall is pressuring the stock. Read More.
• Negative Sentiment: Regulatory/anticompetitive risk: multiple state attorneys general have urged the DOJ to closely review a Netflix acquisition, adding a material regulatory hurdle that could scuttle or delay any deal and reduce near‑term upside. Read More.
• Negative Sentiment: Market signaling: Netflix shares rallied after Paramount’s sweetened bid — investors interpreted that as a higher probability Netflix will step back (good for NFLX holders, not for WBD upside), which could remove the bidding escalation premium supporting WBD’s rally. Read More.

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.