Inquired about the number of films being produced this year and next, confidence in maintaining that level, and hypothetically, how long it would take to split the company if the Paramount deal didn't happen.

Management stated they are making 14 films this year, ramping up to 19 next year, and are confident in maintaining that volume due to creative teams and IP. David Zaslav reiterated confidence that the Paramount transaction will close, avoiding the hypothetical split question. “we're making 14 films this year, ramping up to 19 next year, and we're very confident that we're going to be able to maintain that larger number.”

Asked for comments on the underlying linear ad market, weak categories, and the demand environment from other streamers for WBD's library content, including margins.

Management attributed the linear ad decline to the NBA and noted consistent underlying trends in the U.S. but weaker international markets due to geopolitical factors. They reported very healthy demand for library content, even for decade-old shows, with high margins, and noted a shift towards internal utilization of content. “We're seeing very healthy -- very healthy demand. This goes back to the enormous value of our library.”

Asked how the company maintains employee focus during the prolonged deal process, for an update on the DC strategy, and the benefits of bundling for HBO Max.

David Zaslav praised the company's culture and work ethic, emphasizing a focus on performance and storytelling. He confirmed a robust DC pipeline with James Gunn and Matt Reeves working on key projects. JB Perrette highlighted that bundling significantly improves subscriber acquisition and retention, with 2026 expected to be the best year ever for retention and lower churn. “And we continue to see both benefits on subscriber acquisition as well as, obviously, retention and meaningful improvements in churn with those bundles.”

WBD

Warner Bros. Discovery (WBD) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Communication Services· Aug 6, 2026

Source: earnings call transcript

Executive summary

Warner Bros. Discovery Q2 FY26 — Streaming Profitability Surges Amidst Content Strength

Warner Bros. Discovery delivered a strong second quarter, marked by record streaming segment revenue and significant adjusted EBITDA profitability, driven by the global success of HBO content. While the studio business faced a challenging period and linear advertising saw declines, the company emphasized its diversified strategy, robust content pipeline, and confidence in its long-term financial targets. Management also reiterated its commitment to the pending divestiture to Paramount's Skydance, highlighting the company's strong operational performance.

Highlights

Streaming segment delivered over $3 billion in revenues for the first time ever.
Streaming generated $512 million in adjusted EBITDA, a more than 60% improvement over Q2 2025, with a nearly 17% adjusted EBITDA margin.
HBO Max garnered 122 Emmy nominations, leading the industry.
CNN linear viewership increased 24% over the previous year, and minutes spent across all CNN platforms increased 19%.
Discovery Shark Week saw its highest year-over-year growth in more than a decade.

Concerns

Linear advertising was down nearly 30% in Q2, impacted by the NBA and underlying market weakness.
The Studio film business underperformed expectations in Q2 and is 'a little lighter' this year compared to an outstanding Q2 2025.
International linear advertising was worse in Q2 than Q1, with a mixed picture into Q3 due to consumer weakness and geopolitical environment.

Guidance & targets

Category	Target	Timeline	Confidence
Studio segment adjusted EBITDA	over $3 billion high materiality	Long-term	High
Harry Potter series production	10 consecutive years medium materiality	Next 10 years	High
Film production volume	19 films medium materiality	FY27	High
Film production volume	maintain that larger number medium materiality	2027 and beyond	High
HBO Max retention and churn	best year ever in terms of retention and lower churn medium materiality	FY26	High
HBO Max content lineup strength	even more bullish low materiality	FY27	Low

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Streaming segment Achieved record revenues and significant adjusted EBITDA profitability, transforming from a loss-making U.S.-only service to a global high-growth asset. Subscriber-related revenue growth accelerated 200 basis points sequentiallyPositive engagement and subscriber trends	over $3 billion	10% ex-FX	—	$512 million adjusted EBITDA (nearly 17% margin)
Studio segment Underperformed expectations in Q2 FY26 but is diversifying across theatrical, television, licensing, games, experiences, retail, and consumer products to manage risk and achieve long-term EBITDA targets. Strong film lineup expected for 2027. 14 films this year19 films next yearMore than 80 shows on air across every platform (Warner Bros. TV)Average $5 billion library revenue	—	—	—	over $3 billion adjusted EBITDA (long-term goal)
Global Networks Demonstrated resilience despite headwinds, driven by premium sports properties, news, and general entertainment content. International linear advertising faced weakness. CNN linear viewership increased 24% YoYMinutes spent across all CNN platforms increased 19%Discovery Shark Week highest YoY growth in over a decadeTNT Sports NBA championship highest rated everMLB regular season viewership increased >20%NHL playoffs viewership increased 50%4 of the top 10 shows in general entertainment across all cable networks	—	—	—	—

WBD operating KPIs by quarter

WBD operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Change vs prior quarter
Paid subscriber net additions Direct-to-Consumer	~6.5M We added about 6.5 million subscribers in the fourth quarter and nearly 20 million subscribers in less than a year. Source: earnings call transcript	5M+ And in the first quarter, we gained over 5 million subscribers and delivered $339 million in EBITDA. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline	Details
Harry Potter series	launch	Christmas Day
Lanterns	launch	next few weeks

Deals & partnerships

Paramount's Skydance Proposed sale of Warner Bros. Discovery to Paramount's Skydance

Management remains confident that the agreed-upon sale will be completed. The company is performing at a very high level to deliver the best possible company to the acquirer.

Risks & headwinds

Linear advertising market weakness Q2 FY26, continuing into Q3 FY26 for international

down nearly 30% in Q2

Mitigation:Leveraging strong viewership in news and sports; offsetting with HBO Max growth in some markets.

Studio film underperformance Q2 FY26, 'a little lighter' this year

a handful of recent films have underperformed expectations

Mitigation:Diversifying the Studio segment across theatrical, television, licensing, games, experiences, retail, and consumer products; strong film lineup planned for 2027.

International linear advertising market weakness Q2 FY26, Q3 FY26

Q2 was worse than Q1; mixed picture into Q3

Mitigation:Offsetting with HBO Max growth in some markets; monitoring market-by-market trends.

Geopolitical environment Ongoing

understandably difficult geopolitical environment

Mitigation:Impacts consumer weakness in international ad markets; company focuses on quality, trustworthiness of journalism (CNN).

What to watch in Q3 FY26

Streaming distribution growth trajectory

Remainder of 2026

Current low teens (excluding related party deal)

Target Continued solid trajectory

Why it matters

Indicates continued growth in the key streaming segment, crucial for overall company performance.

And that trajectory looks very solid for the remainder of the year.

Find out whether WBD delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked about the upcoming HBO scripted show pipeline, potential for fewer returning shows in 2027, and how the Studio segment plans to reach its $3 billion EBITDA target given recent performance.

Management confirmed a strong HBO content pipeline for 2027, including White Lotus, Knight of the Seven Kingdoms, The Pitt, and The Last of Us, and highlighted the global expansion of MAX. For the Studio, they expressed high confidence in the $3 billion EBITDA target, citing diversification, a strong 2027 film lineup, growth in Warner Bros. TV, ancillary businesses, and Games.

“I have 0 doubts about our long-term $3 billion EBITDA target for the studio.”

asked by Steven Cahall · answered by Gunnar Wiedenfels

3 min read 7 chapters

Detailed narrative

Streaming Business Turnaround and Profitability

The Streaming segment achieved a significant milestone in Q2 FY26, reporting over $3 billion in revenues for the first time. This was accompanied by $512 million in adjusted EBITDA, marking a more than 60% improvement year-over-year, and an adjusted EBITDA margin of nearly 17%.

Management highlighted the transformation of HBO Max from a U.S.-only service losing over $2 billion in 2022 to a global, high-growth asset with strong financial returns, driven by subscriber-related revenue growth accelerating to 10% ex-FX.

Robust Content Pipeline and Emmy Recognition

WBD's commitment to quality storytelling was evident in its content performance and industry accolades. HBO series like The Pitt, Knight of the Seven Kingdoms, House of the Dragon, and Euphoria each averaged at least 25 million global viewers per episode, with some exceeding 30 million.

The company led the industry with 150 Emmy nominations, including 122 for HBO Max across 21 programs, and 52 for Warner Bros. Television. Upcoming content includes Lanterns, a new season of Gilded Age, and the Harry Potter series greenlit for the next 10 years, debuting on Christmas Day.

Studio Diversification and Long-Term Outlook

Despite a challenging Q2 for the film business, with some recent films underperforming, management expressed confidence in the Studio segment's long-term goal of over $3 billion in adjusted EBITDA. The strategy involves diversifying beyond theatrical releases into television, licensing, games, experiences, retail, and consumer products to manage risk.

Film production is set to increase from 14 films in FY26 to 19 in FY27, with a strong lineup including Lord of the Rings, Batman, Superman, and Minecraft II. Warner Bros. TV is also performing well with over 80 shows on air, and the Games division is seeing growth opportunities.

Resilience of Global Networks

The global networks demonstrated resilience amidst headwinds. TNT Sports saw record viewership for the national championship basketball game, over 20% increase for MLB, and 50% for NHL playoffs. CNN's linear viewership increased 24% year-over-year, with minutes spent across all platforms up 19%.

Discovery Shark Week achieved its highest year-over-year growth in over a decade, and network brands hosted 4 of the top 10 general entertainment shows on cable during Q2.

Effective Bundling Strategy

WBD continues to champion bundling as a powerful strategy for subscriber acquisition and retention. Successful partnerships with Disney, Verizon, Mercado Libre, and RTL have demonstrated meaningful improvements in churn. Management anticipates 2026 to be the best year ever for retention and lower churn, with continued confidence in this trend, particularly as the content lineup strengthens in 2027.

Company Culture and Focus Amidst Transaction

CEO David Zaslav highlighted the inspiring work ethic and focus of the company's 40,000 employees, despite the ongoing process of the proposed divestiture to Paramount's Skydance. He noted that the company is performing at a very high level, striving to deliver a stronger and higher-growth entity.

The culture is driven by a commitment to storytelling excellence across all assets, from HBO to Warner Bros. and the global cable channels.

DC Universe Strategy Update

The DC universe is progressing well under James Gunn's leadership, with a strong focus on 'Man of Tomorrow' and Matt Reeves' work on 'Batman.' Upcoming titles like 'Clayface' and 'Lanterns' for HBO are generating excitement, indicating a robust pipeline for the DC franchise. Management expressed confidence in the creative direction and future releases.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.