Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing WBD more generously than it does today.
Analysis OverviewHoldUpdated May 1, 2026
Warner Bros. Discovery, Inc. (WBD) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
32
analysts
12 bullish · 1 bearish · 32 covering WBD
Strong Buy
0
Buy
12
Hold
19
Sell
1
Strong Sell
0
Consensus Target
$30
+9.9% vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
32
Published analyst ratings
Valuation Context
—
Forward P/E · Market cap $73.8B
WBD price targets
Three scenarios for where WBD stock could go
Current
~$27
Confidence
29 / 100
Updated
May 1, 2026
Market caseClosest to today
Base case
—
The base case reflects analyst consensus expectations — steady delivery without requiring a major catalyst or re-rating.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Warner Bros. Discovery, Inc.
WBD · NASDAQCommunication ServicesEntertainmentDecember year-end
Warner Bros. Discovery is a global media and entertainment conglomerate that produces and distributes content across film, television, and streaming platforms. It generates revenue primarily through three segments: Studios (film and TV production), Networks (cable and broadcast channels), and Direct-to-Consumer (streaming services like Max and discovery+). The company's key advantage is its massive content library and iconic franchises — including DC, Harry Potter, HBO originals, and Discovery's unscripted programming — which create a deep moat in an increasingly competitive streaming landscape.
Market Cap
$73.8B
Revenue TTM
$37.9B
Net Income TTM
$485M
Net Margin
1.3%
WBD Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
25%Exceptional
12 quarters tracked
Revenue Beat Rate
17%Exceptional
vs consensus estimates
Avg EPS Surprise
-167.6%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 2 of 4Q2 2025
EPS
$-0.18/$-0.17
Revenue
$9.0B/$9.6B
Q3 2025
EPS
$0.63/$-0.24
Revenue
$9.8B/$9.8B
Q4 2025
EPS
$-0.06/$-0.07
Revenue
$9.0B/$9.2B
Q1 2026
EPS
$-0.10/$-0.03
Revenue
$9.5B/$9.4B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $-0.18/$-0.17 | -3.8% | $9.0B/$9.6B | -6.4% |
| Q3 2025 | $0.63/$-0.24 | +362.8% | $9.8B/$9.8B | +0.4% |
| Q4 2025 | $-0.06/$-0.07 | +11.6% | $9.0B/$9.2B | -1.4% |
| Q1 2026 | $-0.10/$-0.03 | -209.8% | $9.5B/$9.4B | +1.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$41.9B
+10.7% YoY
FY2
$48.2B
+14.9% YoY
EPS Outlook
FY1
$-0.46
-335.8% YoY
FY2
$-1.12
-142.8% YoY
Trailing FCF (TTM)$4.1B
FCF Margin: 10.9%
Next Earnings
May 7, 2026
Expected EPS
$-0.10
Expected Revenue
$8.9B
WBD beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
WBD Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $39.3B
Product Mix
Latest annual revenue by segment or product family
Distribution Revenue
50.1%
-2.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
67.2%
-5.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Distribution Revenue is the largest disclosed segment at 50.1% of FY 2024 revenue, down 2.6% YoY.
UNITED STATES is the largest reported region at 67.2%, down 5.6% YoY.
WBD Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly Undervalued
Fair value est. $30 — implies +13.1% from today's price.
Upside to Fair Value
13.1%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WBD
-5.9x
vs
S&P 500
25.1x
123% discount
vs Communication Services Trailing P/E
WBD
-5.9x
vs
Communication Services
15.0x
139% discount
vs WBD 5Y Avg P/E
Today
-5.9x
vs
5Y Average
16.0x
137% discount
Forward PE
—
S&P 500
19.1x
—
Communication Services
13.0x
—
5Y Avg
—
—
Trailing PE
-5.9x
S&P 500
25.1x
-123%
Communication Services
15.0x
-139%
5Y Avg
16.0x
-137%
PEG Ratio
—
S&P 500
1.72x
—
Communication Services
0.74x
—
5Y Avg
—
—
EV/EBITDA
9.9x
S&P 500
15.2x
-35%
Communication Services
8.4x
+17%
5Y Avg
4.3x
+127%
Price/FCF
16.7x
S&P 500
21.1x
-21%
Communication Services
11.8x
+42%
5Y Avg
6.2x
+168%
Price/Sales
1.9x
S&P 500
3.1x
-40%
Communication Services
1.0x
+92%
5Y Avg
1.0x
+85%
Dividend Yield
—
S&P 500
1.87%
—
Communication Services
3.45%
—
5Y Avg
—
—
| Metric | WBD | S&P 500 | Communication Services | 5Y Avg WBD |
|---|---|---|---|---|
| Forward PE | — | 19.1x | 13.0x | — |
| Trailing PE | -5.9x | 25.1x-123% | 15.0x-139% | 16.0x-137% |
| PEG Ratio | — | 1.72x | 0.74x | — |
| EV/EBITDA | 9.9x | 15.2x-35% | 8.4x+17% | 4.3x+127% |
| Price/FCF | 16.7x | 21.1x-21% | 11.8x+42% | 6.2x+168% |
| Price/Sales | 1.9x | 3.1x-40% | 1.0x+92% | 1.0x+85% |
| Dividend Yield | — | 1.87% | 3.45% | — |
WBD trades above S&P 500 benchmarks on 0 of 4 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWBD Financial Health
Verdict
Stressed
WBD generates $4.1B in free cash flow at a 10.9% margin.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$37.9B
Revenue Growth
TTM vs prior year
-4.3%
Gross Margin
Gross profit as a share of revenue
44.0%
Operating Margin
Operating income divided by revenue
1.5%
Net Margin
Net income divided by revenue
1.3%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.20
Free Cash Flow (TTM)
Cash generation after capex
$4.1B
FCF Margin
FCF as share of revenue — the primary cash quality signal
10.9%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-9.7%
ROA
Return on assets, trailing twelve months
0.5%
Cash & Equivalents
Liquid assets on the balance sheet
$5.3B
Net Debt
Total debt minus cash
$34.2B
Debt Serviceability
Net debt as a multiple of annual free cash flow
8.3× FCF
~8.3 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
1.3%
* Elevated by buyback-compressed equity — compare ROIC (-9.7%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.0%
Dividend
—
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
2.5B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageWBD Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
High Debt Load
WBD carries a substantial debt load from the WarnerMedia‑Discovery merger, resulting in significant annual interest expenses that are not fully covered by EBIT. The high debt‑to‑equity ratio amplifies financial risk, especially in a recessionary environment.
High Risk
Altman Z‑Score Distress
WBD’s Altman Z‑Score falls into the distress zone, indicating a heightened probability of bankruptcy. This signals potential financial instability and could limit the company’s ability to secure additional financing.
High Risk
Antitrust Scrutiny
Regulators are closely examining potential acquisition bids from Paramount Skydance and Netflix, raising concerns about competition, consumer prices, and content diversity. The outcome could delay or block deals, impacting shareholder value.
High Risk
Regulatory Hurdles
Any proposed acquisition of WBD faces extensive reviews by the DOJ and international regulators, potentially extending timelines and exposing the company to litigation or forced divestitures. These hurdles add uncertainty to financing assumptions and market conditions.
Medium
Revenue Declines
WBD has experienced a negative three‑year revenue growth rate, with modest net and operating margins. The company has also delivered significant negative earnings surprises, making it difficult to meet investor expectations.
Medium
Liquidity Concerns
WBD’s current ratio indicates limited liquidity, meaning the company may struggle to cover short‑term obligations. This constraint could exacerbate financial stress during downturns.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WBD Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust IP Library for Licensing
Warner Bros. Discovery owns a vast portfolio of iconic franchises, including Batman, Harry Potter, and numerous gaming titles. These assets provide a strong foundation for content‑driven expansion and generate significant licensing opportunities across media platforms.
HBO Max Streaming Expansion
The company is focused on growing its digital streaming footprint through HBO Max, aiming to broaden revenue streams beyond traditional broadcast and cable markets. This strategy positions WBD to capture a larger share of the rapidly expanding streaming audience.
2025 Dual‑Company Split
In August 2025, WBD announced plans to split into two public entities, each with new leadership. The move is intended to unlock new revenue streams, engage global audiences, and drive operational transformation.
Strong Free Cash Flow Base
Despite recent financial challenges, WBD generates substantial free cash flow, which has been a primary focus for debt reduction. This consistent cash generation signals underlying financial strength and supports future investment.
Debt Load Reduction Progress
The company has made significant progress in reducing its debt load since the merger, addressing investor concerns about leverage. Continued debt reduction efforts are expected to improve balance‑sheet health and support long‑term growth.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WBD Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$27.24
52W Range Position
87%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$8.06
+238.0% from the low
52-Week High
$30.00
-9.2% from the high
1 Month
-0.61%
3 Month
+1.80%
YTD
-4.4%
1 Year
+225.5%
3Y CAGR
+28.3%
5Y CAGR
-5.8%
10Y CAGR
-0.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WBD vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
—
vs 14.3x median
Peer median unavailable
Revenue Growth
+10.7%
vs +6.8% median
+58% above peer median
Net Margin
1.3%
vs 12.8% median
-90% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WBD WBD Warner Bros. Discovery, Inc. | $73.8B | — | +10.7% | 1.3% | Hold | +9.9% |
DIS DIS The Walt Disney Company | $180.0B | 15.3x | +4.5% | 12.8% | Buy | +38.8% |
FOX FOXA Fox Corporation | $13.9B | 13.4x | +6.8% | 11.4% | Hold | +12.8% |
NFL NFLX Netflix, Inc. | $372.4B | 24.7x | +13.9% | 24.3% | Buy | +32.3% |
CMC CMCSA Comcast Corporation | $96.4B | 7.5x | -1.0% | 14.8% | Buy | +20.4% |
AMC AMC AMC Entertainment Holdings, Inc. | $973M | — | +10.8% | -10.9% | Hold | +25.8% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
FAQ
7 questionsWBD Investor Questions
Common questions answered from live analyst data and company financials.
01Is Warner Bros. Discovery, Inc. (WBD) stock a buy or sell in 2026?
Warner Bros. Discovery, Inc. (WBD) is rated Hold by Wall Street analysts as of 2026. Of 32 analysts covering the stock, 12 rate it Buy or Strong Buy, 19 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $30, implying +9.9% from the current price of $27.
02What is the WBD stock price target for 2026?
The Wall Street consensus price target for WBD is $30 based on 32 analyst estimates. The high-end target is $31 (+13.8% from today), and the low-end target is $28 (+2.8%).
03Is Warner Bros. Discovery, Inc. (WBD) stock overvalued in 2026?
Forward earnings data for WBD is not currently available. Review the valuation table above for trailing P/E, EV/EBITDA, and price-to-sales comparisons against market and sector benchmarks.
04What are the main risks for Warner Bros. Discovery, Inc. (WBD) stock in 2026?
The primary risks for WBD in 2026 are: (1) High Debt Load — WBD carries a substantial debt load from the WarnerMedia‑Discovery merger, resulting in significant annual interest expenses that are not fully covered by EBIT. (2) Altman Z‑Score Distress — WBD’s Altman Z‑Score falls into the distress zone, indicating a heightened probability of bankruptcy. (3) Antitrust Scrutiny — Regulators are closely examining potential acquisition bids from Paramount Skydance and Netflix, raising concerns about competition, consumer prices, and content diversity. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Warner Bros. Discovery, Inc.'s revenue and earnings forecast?
Analyst consensus estimates WBD will report consensus revenue of $41.9B (+10.7% year-over-year) and EPS of $-0.46 (-335.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $48.2B in revenue.
06When does Warner Bros. Discovery, Inc. (WBD) report its next earnings?
Warner Bros. Discovery, Inc. is expected to report its next earnings on approximately 2026-05-07. Consensus expects EPS of $-0.10 and revenue of $8.9B. Over recent quarters, WBD has beaten EPS estimates 25% of the time.
07How much free cash flow does Warner Bros. Discovery, Inc. generate?
Warner Bros. Discovery, Inc. (WBD) generated $4.1B in free cash flow over the trailing twelve months — a free cash flow margin of 10.9%. WBD returns capital to shareholders through and share repurchases ($0 TTM).