Warner Bros. Discovery Revenue Falls 6% as Deal Talks Intensify

Faizan Farooque

Fri, February 27, 2026 at 12:29 AM GMT+9 1 min read

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This article first appeared on GuruFocus.

Warner Bros. Discovery Inc (WBD, Financials) reported a 6% decline in quarterly revenue as weakness in its traditional television and film businesses offset gains in streaming.

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The quarter’s revenue was around $9.5 billion, which was about what analysts had expected. The business didn’t say anything about talks with Paramount Skydance Corp, whose new proposal might mess up a contract that was already disclosed with Netflix Inc.

During the quarter, HBO Max gained 3.5 million new customers, raising its total to 131.6 million around the world. The amount of money made from streaming went up 5% to around $2.8 billion. But after a distribution arrangement ended, the segment’s adjusted earnings declined 4% to $393 million.

Legacy operations were still having trouble with their performance. Adjusted income in the film and television studio segment dropped 23% to $728 million. This was due to fewer theatrical releases and changes in the timing of content renewals. Discovery Linear Networks’ revenue fell 12% to $4.2 billion, and adjusted income fell 27% to $1.4 billion as more people cut the cord.

Investors are likely to pay attention to any changes in merger talks and how long streaming growth can last.

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