Warner Bros. Discovery Q2 2026 earnings: streaming revenue up 10%

Warner Bros. Discovery reported second-quarter earnings on Thursday, with its streaming segment posting 10% revenue growth from a year earlier, even as the company's overall results fell short of analyst expectations amid mounting legal pressure on its proposed merger with Paramount Skydance.

The streaming segment cleared $3 billion in quarterly revenue, the company said, generating adjusted EBITDA above $500 million. The company credited the results to HBO Max's reach in new international markets and the performance of series such as "Euphoria," "House of the Dragon," and "The Pitt." Warner Bros. Discovery said forthcoming titles such as "Harry Potter" and "The Gilded Age" set up a favorable outlook for the back half of the year.

Streaming advertising revenue rose 9%, the company said, though the loss of NBA broadcasting rights weighed on that figure. Stripping out currency fluctuations, the loss of NBA-related ad inventory cut 16 percentage points from the streaming segment's advertising growth comparison.

Total revenue for the quarter came in at $8.72 billion, an 11% decline from a year earlier. Wall Street had expected $9.21 billion, according to The Hollywood Reporter. Adjusted EBITDA was $1.88 billion, down from $1.95 billion in the same period last year.

The company recorded net income of $149 million, or $0.06 per share, a sharp drop from the $1.58 billion, or $0.63 per share, it earned in the year-ago quarter. Warner Bros. Discovery said the swing was tied to intangible-asset write-downs related to the pending acquisition and charges associated with restructuring activity.

The studio's theatrical business saw revenue fall 46% year over year, according to The Hollywood Reporter, with disappointing runs from "Supergirl" and "The Bride" measured against a particularly strong prior-year slate that featured "A Minecraft Movie" and "Sinners."

The earnings report arrives as the proposed $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance moves toward trial. A coalition of 12 state attorneys general won a trial date of March 2, 2027, after U.S. District Judge Araceli Martínez-Olguín set the schedule, rejecting Paramount's push for a November 2026 start. Under the merger agreement, Paramount must begin paying Warner Bros. Discovery shareholders approximately $7 million per day beginning October 1 for every day the deal remains unconsummated.