Warner Bros. Discovery reported that quarterly streaming revenue exceeded $3 billion for the first time, driven by 10% growth in subscriber-related revenue and a 200 basis point sequential acceleration. The company achieved a 17% adjusted EBITDA margin in streaming, a significant turnaround from 2022 losses, with management crediting the global scaling of HBO Max and series like 'The Pitt' and 'House of the Dragon,' which averaged over 25 million viewers per episode. The Studio segment faced a difficult quarter due to underperforming films and tough comparisons against 2025's content licensing deals and the hit 'Minecraft,' but management maintained a long-term target of $3 billion in adjusted EBITDA for the segment, supported by a plan to increase film production from 14 titles in 2026 to 19 in 2027. Linear networks showed resilience through premium sports and news, with CNN viewership up 24% and TNT Sports achieving its highest-rated national championship basketball game. Management also reaffirmed confidence in the pending sale to Paramount Skydance and highlighted expanded bundling partnerships, such as the Disney bundle, which have improved churn.
Warner Bros Discovery IncStreaming revenue exceeded $3B for first time with 10% subscriber-related revenue growth and strong content performance.
Paramount Skydance Corporation Class B Common StockPending sale to Paramount Skydance reaffirmed, indicating deal progress.
Walt Disney Company
NVIDIA Corporation