Warner Bros. Discovery WBD is slated to report second-quarter 2026 earnings on Aug. 6.
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $9.29 billion, suggesting a 5.3% year-over-year decline.
The consensus mark for the second-quarter bottom line is currently pegged at a loss of 13 cents per share, widened by a penny over the past 30 days. This also marks a sharp decline from the year-ago quarter's earnings of 63 cents per share.
In the last reported quarter, Warner Bros. Discovery delivered a negative earnings surprise of 1,070%. The company’s earnings beat the Zacks Consensus Estimate once in the trailing four quarters and missed the same in the remaining three, with an average negative surprise of 306.56%.
Warner Bros. Discovery, Inc. Price and EPS Surprise
Warner Bros. Discovery, Inc. price-eps-surprise | Warner Bros. Discovery, Inc. Quote
Let’s see how things have shaped up for WBD before the announcement.
What Investors Should Watch Ahead of WBD's Q2 Results
Warner Bros. Discovery is expected to face a meaningful advertising headwind in the second quarter of 2026 due to the absence of NBA broadcasting rights. Management indicated that the loss of NBA programming will create a 16% ex-FX headwind to Streaming advertising revenues and a 20% ex-FX negative impact to Global Linear Networks advertising revenues in the quarter under review. While certain sports events will provide partial offsets, the NBA has historically been one of WBD's largest advertising drivers, making its absence likely to have pressured year-over-year advertising growth and overall revenue performance.
The company's Global Linear Networks business continues to face structural pressure from declining pay-TV subscriptions. In the first quarter, domestic linear pay-TV subscribers fell roughly 10%, contributing to weaker distribution revenues. Warner Bros. Discovery indicated that underlying domestic delivery trends in the second quarter would remain broadly similar to the prior quarter, suggesting these secular declines are likely to continue weighing on affiliate-fee growth, advertising revenues and network profitability during the quarter under review.
The company continues to incur restructuring, separation and transaction-related expenses as it progresses toward its planned merger with Paramount Skydance. WBD anticipates additional cash expenses related to the transaction even before the deal is finalized; this means that, despite improvements in core business operations, these expenses are likely to continue weighing on the company's reported earnings and free cash flow in the quarter to be reported.
Offsetting these headwinds, WBD entered the second quarter with a compelling HBO Max content lineup, including the successful return of Euphoria , continued momentum from The Pitt and the June release of House of the Dragon Season 3. The company also highlighted an attractive pipeline featuring Stuart Fails to Save the Universe, Lanterns and Harry Potter and the Philosopher's Stone extending into the second half of the year. This steady flow of premium content is designed to boost viewer engagement, improve retention and attract new subscribers, supporting higher subscriber-related revenues. As a result, the streaming business is expected to have benefited from stronger user activity and monetization in the quarter under review.
What Our Model Says About WBD Stock
Our proven model does not conclusively predict an earnings beat for WBD this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you can see below.
WBD currently has an Earnings ESP of -85.14% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that they have the right combination of elements to beat on earnings in their upcoming releases:
Versant Media Group, Inc. VSNT currently has an Earnings ESP of +6.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
VSNT shares have gained 23.7% in the past six months. VSNT is set to report second-quarter 2026 results on Aug. 6.
Corsair Gaming CRSR currently has an Earnings ESP of +9.09% and a Zacks Rank #2.
CRSR shares have surged 127.8% in the past six months. CRSR is slated to report second-quarter 2026 results on Aug. 6.
Six Flags Entertainment Corporation FUN currently has an Earnings ESP of +6.90% and a Zacks Rank #3.
FUN shares have returned 1.6% in the past six months. FUN is set to report its second-quarter 2026 results on Aug. 6.
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Warner Bros. Discovery, Inc. (WBD): Free Stock Analysis Report
Six Flags Entertainment Corporation (FUN): Free Stock Analysis Report
Corsair Gaming, Inc. (CRSR): Free Stock Analysis Report
Versant Media Group, Inc. (VSNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).