WBD streaming tops $3 billion as management builds toward 2027
Streaming revenue at Warner Bros. Discovery (WBD) crossed $3 billion for the first time in the second quarter of 2026, with subscriber-related revenue growing 10% on a 200 basis point sequential acceleration. The division posted a 17% adjusted EBITDA margin, reversing losses recorded in 2022. Management reaffirmed confidence in the pending sale to Paramount Skydance and pointed to 2027 as the year the content slate justifies the setup.
Key takeaways
- Warner Bros. Discovery streaming revenue surpassed $3 billion for the first time in Q2 2026, with subscriber-related revenue up 10% on a 200 basis point sequential acceleration.
- The streaming division posted a 17% adjusted EBITDA margin, reversing losses recorded in 2022.
- HBO Max series 'The Pitt' and 'House of the Dragon' each averaged more than 25 million viewers per episode during the quarter.
- Management reaffirmed confidence in the pending sale to Paramount Skydance and pointed to 2027 as the year the content slate justifies the setup.
- The Studio segment was the quarter's soft spot due to underperforming theatrical releases and a tough comparison against 2025's licensing deals and 'Minecraft.'
Streaming revenue at Warner Bros. Discovery (WBD) crossed $3 billion for the first time in the second quarter of 2026, with subscriber-related revenue growing 10% on a 200 basis point sequential acceleration. The division posted a 17% adjusted EBITDA margin, reversing losses recorded in 2022. Management reaffirmed confidence in the pending sale to Paramount Skydance and pointed to 2027 as the year the content slate justifies the setup.
The streaming print
HBO Max drove the milestone through global expansion and a pair of high-engagement series. "The Pitt" and "House of the Dragon" averaged more than 25 million viewers per episode during the quarter. JB Perrette confirmed that bundling arrangements with Disney and European partner RTL+ are producing data-proven improvements in both subscriber acquisition and churn. Streaming distribution growth is expected to remain in the double digits or low teens for the rest of 2026 as the company laps related-party deals and expands international monetization.
Studio segment absorbs a tough comparison
The Studio was the quarter's soft spot. Underperforming theatrical releases and a difficult year-over-year comparison against 2025's content licensing deals and the performance of "Minecraft" weighed on results. Management held its long-term adjusted EBITDA target of $3 billion for the segment and outlined a plan to grow film production from 14 titles in 2026 to 19 in 2027. Gunnar Wiedenfels tied the target to a stronger 2027 film slate and the normalization of the TV library as SVOD-produced shows mature into downstream licensing windows. A temporary replenishment gap in that library reflects the ongoing shift from broadcast to streaming production.
Linear networks hold, ad markets soften
CNN viewership rose 24% during the quarter, and TNT Sports posted its highest-rated national championship basketball game. The absence of NBA programming in certain periods cut ad revenue but also reduced rights costs, providing a short-term profit offset. International advertising came in below Q1 levels, with management pointing to geopolitical instability and consumer caution as the primary headwinds.
What to watch
The 2027 slate is the file. Warner Bros. Discovery has lined up theatrical tentpoles in "Lord of the Rings," "Batman," and "Superman," returning series "White Lotus" and "The Last of Us" for HBO Max, and a 10-year Harry Potter commitment. David Zaslav stated the business is being run to exceed the plan presented during Paramount Skydance deal negotiations, with employee morale described as high. The definitive agreement's closing timeline is the next catalyst to track.
Related reading
Filed by the newsroom of MarketPR on August 7, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.