Research Analysts Offer Predictions for Warner Bros. Discovery, Inc.'s FY2026 Earnings (NASDAQ:WBD)

Warner Bros. Discovery, Inc. (NASDAQ:WBD - Free Report) - Research analysts at Seaport Res Ptn decreased their FY2026 earnings per share (EPS) estimates for shares of Warner Bros. Discovery in a note issued to investors on Tuesday, October 1st. Seaport Res Ptn analyst D. Joyce now anticipates that the company will post earnings of ($0.01) per share for the year, down from their prior forecast of $0.03. The consensus estimate for Warner Bros. Discovery's current full-year earnings is ($4.17) per share.

A number of other research analysts have also recently weighed in on the company. The Goldman Sachs Group lowered their price objective on Warner Bros. Discovery from $8.50 to $7.50 and set a "neutral" rating on the stock in a research report on Thursday, August 8th. TD Cowen lowered their price target on Warner Bros. Discovery from $15.00 to $14.00 and set a "buy" rating on the stock in a report on Thursday, August 8th. Wells Fargo & Company reduced their price objective on Warner Bros. Discovery from $9.00 to $7.00 and set an "equal weight" rating on the stock in a research note on Thursday, August 8th. Evercore ISI reduced their price objective on Warner Bros. Discovery from $10.00 to $9.00 and set an "outperform" rating on the stock in a research note on Thursday, August 8th. Finally, Needham & Company LLC reissued a "hold" rating on shares of Warner Bros. Discovery in a research report on Thursday, August 8th. One investment analyst has rated the stock with a sell rating, twelve have issued a hold rating and nine have issued a buy rating to the company's stock. According to data from MarketBeat.com, Warner Bros. Discovery has an average rating of "Hold" and a consensus target price of $10.93.

Warner Bros. Discovery Stock Performance

Shares of WBD stock traded down $0.23 during trading hours on Thursday, reaching $7.74. 29,665,805 shares of the company traded hands, compared to its average volume of 29,505,922. Warner Bros. Discovery has a 12-month low of $6.64 and a 12-month high of $12.70. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.76 and a quick ratio of 0.76. The company has a market cap of $18.97 billion, a P/E ratio of -6.43 and a beta of 1.48. The firm has a 50-day moving average price of $7.85 and a 200 day moving average price of $7.95.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last posted its quarterly earnings data on Wednesday, August 7th. The company reported ($4.07) earnings per share for the quarter, missing analysts' consensus estimates of ($0.18) by ($3.89). Warner Bros. Discovery had a negative net margin of 29.47% and a negative return on equity of 27.28%. The company had revenue of $9.71 billion for the quarter, compared to analysts' expectations of $10.07 billion. During the same period in the previous year, the firm earned ($0.51) earnings per share. The firm's quarterly revenue was down 6.2% on a year-over-year basis.

Institutional Investors Weigh In On Warner Bros. Discovery

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Sessa Capital IM L.P. increased its holdings in shares of Warner Bros. Discovery by 28.8% in the second quarter. Sessa Capital IM L.P. now owns 22,784,883 shares of the company's stock valued at $169,520,000 after purchasing an additional 5,100,000 shares during the period. Retirement Systems of Alabama grew its holdings in Warner Bros. Discovery by 781.3% during the second quarter. Retirement Systems of Alabama now owns 4,316,498 shares of the company's stock worth $32,115,000 after acquiring an additional 3,826,715 shares during the period. Mackenzie Financial Corp grew its holdings in Warner Bros. Discovery by 1,216.7% during the second quarter. Mackenzie Financial Corp now owns 3,009,558 shares of the company's stock worth $22,391,000 after acquiring an additional 2,780,986 shares during the period. EdgePoint Investment Group Inc. boosted its position in Warner Bros. Discovery by 14.6% during the first quarter. EdgePoint Investment Group Inc. now owns 20,620,335 shares of the company's stock worth $180,016,000 after purchasing an additional 2,621,582 shares in the last quarter. Finally, Drexel Morgan & Co. boosted its position in Warner Bros. Discovery by 97.6% during the first quarter. Drexel Morgan & Co. now owns 4,600,463 shares of the company's stock worth $40,162,000 after purchasing an additional 2,272,245 shares in the last quarter. 59.95% of the stock is currently owned by hedge funds and other institutional investors.

About Warner Bros. Discovery

Warner Bros. Discovery, Inc operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming.