WBD Stock Forecast & Price Target

Warner Bros. Discovery (WBD) demonstrated significant growth in its direct-to-consumer segment, with global subscribers increasing by 6.4 million quarter-over-quarter to reach 116.9 million, marking a 20% year-over-year rise, coupled with an average revenue per user (ARPU) of $7.44. The company also reported a robust 26% increase in direct-to-consumer advertising revenues, supporting a 5% year-over-year rise in direct-to-consumer revenues to $2.7 billion, along with a notable EBITDA turnaround from a loss of $55 million to a positive $409 million. Forecasts indicate a strong revenue trajectory, with projected full-year revenues improving from $39.3 billion in 2025 to $40.5 billion in 2026, underpinned by profitability gains in the studios segment.

Warner Bros. Discovery reported a decline in fourth-quarter revenues, totaling $10 billion, which represents a 2% year-over-year drop and fell short of estimates by the same margin. The company's networks segment experienced a significant revenue decrease of 5% year-over-year, while cash from operations fell by 24%, highlighting ongoing pressures within its television network business, including a 17% drop in advertising revenue. Additionally, projections for fiscal year 2026 were revised downward, with anticipated revenues remaining flat year-over-year and a forecasted EPS loss indicating a continued struggle in profitability.