With a market cap of $63.4 billion, Warner Bros. Discovery, Inc. (WBD) is a global media and entertainment company operating through its Studios, Network, and Direct-to-Consumer (DTC) segments. It owns and distributes a broad portfolio of iconic brands and franchises, including HBO, CNN, Discovery Channel, Warner Bros. Pictures, DC, HGTV, and Max, across television, film, streaming, gaming, and digital platforms worldwide.
Shares of the New York-based company have outperformed the broader market over the past 52 weeks. WBD stock has soared 85.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 15.8%. However, shares of the company are down nearly 12% on a YTD basis, lagging behind SPX’s 8.1% rise.
Focusing more closely, shares of the operator of cable TV channels has exceeded the State Street Communication Services Select Sector SPDR ETF’s (XLC) 1.9% gain over the past 52 weeks.
Warner Bros. Discovery reported Q1 2026 results on May 6, with streaming revenue increasing 9% to $2.89 billion, above analysts' expectation, driven by HBO Max's international expansion. The company ended the quarter with more than 140 million streaming subscribers, reflecting strong subscriber growth and engagement as the global rollout of HBO Max was largely completed. The results were supported by Q1 revenue of $8.89 billion, which was in line with estimates.
Nevertheless, the stock fell marginally the next day as the company's $2.92 billion net loss, including a $2.8 billion Netflix-related termination fee, a 7% decline in advertising revenue, and guidance for a 16% headwind to Q2 streaming advertising revenue from the loss of NBA content overshadowed the strong streaming performance.
For the fiscal year ending in December 2026, analysts expect WBD's loss per share to decline 469% year-over-year to $1.07. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions.
Among the 22 analysts covering the stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” ratings, one “Moderate Buy,” 17 “Holds,” and one “Strong Sell.”
On Feb. 25, Bernstein raised its price target on Warner Bros. Discovery to $27.75 while maintaining a “Market Perform” rating.
The mean price target of $29.16 represents a 13.8% premium to WBD’s current price levels. The Street-high price target of $31.25 suggests a nearly 22% potential upside.
