Warner Bros. Discovery Misses Q2 2026 Revenue Targets Amid Merger Uncertainty

Warner Bros. Discovery reported total revenue of $8.7 billion for the second quarter, an 11% drop from the year-ago period and short of analysts’ $9.2 billion forecast. Diluted earnings per share came in at a profit of 6 cents, beating expectations for a loss of 10 cents per share. The shortfall was driven primarily by the studio division, where revenue fell 39% to $2.3 billion and EBITDA plunged 89% to $96 million. The flagship DC film *Supergirl* earned only $126 million worldwide, the lowest box-office total for a DC release since 2004’s *Catwoman*.

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The quarter’s results were released while the $110 billion merger between Warner Bros. Discovery and Paramount remains in legal limbo. Attorneys general from 12 states and the Writers Guild of America have filed an antitrust suit seeking to block the deal. A trial is scheduled for March 2027. The merger’s uncertainty has compounded the company’s challenges, particularly after the loss of NBA broadcasting rights to NBCUniversal, which eliminated a major source of advertising revenue.

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• Streaming revenue: $3.1 billion, up 10% year-over-year; EBITDA rose 75% to $512 million.

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• Advertising revenue: $1.7 billion, down 22% from the prior year, reflecting the absence of NBA games.

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• Global Linear Networks revenue: $3.99 billion, a 17% decline; adjusted EBITDA fell 4% to $1.4 billion.

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Paramount CEO David Ellison said he is “absolutely open” to discussing a settlement of the antitrust suit and expressed confidence that the company will prevail in court. He emphasized that the firms remain committed to completing the merger despite the current legal challenges. The earnings release highlighted streaming as a bright spot, suggesting the combined entity may rely on digital growth to offset losses in traditional advertising and studio performance.

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