Finance
Warner Bros posts 6% fall in quarterly revenue, deal talks in focus
Published by Global Banking & Finance Review®
Posted on February 26, 2026
2 min readLast updated: February 26, 2026
Quick Summary
Warner Bros Discovery reported a 6% revenue drop as linear TV and film weakened, while HBO Max added subscribers. Streaming grew but profit slipped. Investors focus on ongoing deal talks with Paramount Skydance and Netflix.
Warner Bros posts 6% fall in quarterly revenue, deal talks in focus
Feb 26 (Reuters) - Warner Bros Discovery, at the center of a high-stakes bidding war, reported a 6% drop in quarterly revenue, hurt by declines for its traditional TV and film businesses though its HBO Max streaming service gained subscribers with buzzy series like "Heated Rivalry".
The company in its earnings statement on Thursday did not address its discussions with Paramount Skydance , whose latest offer threatens to upend an existing deal with Netflix. Paramount enticed Warner Bros' board back to the bargaining table last week by raising the possibility of an improved cash offer.
Warner Bros' overall revenue came in at nearly $9.5 billion, in line with an LSEG consensus estimate.
On the bright side, HBO Max continued to grow, helped by series like "Heated Rivalry" and "It: Welcome to Derry".
Warner Bros added 3.5 million streaming subscribers in the quarter, bringing its total number worldwide to 131.6 million.
The streaming group's revenue rose 5% to nearly $2.8 billion, but adjusted earnings fell 4% to $393 million due to the end of an unspecified distribution deal.
Warner Bros' traditional businesses, however, were hurting, with adjusted income for its film and TV studio group tumbling 23% to $728 million.
The film studio, which released nine movies that opened at the top of the box office in 2025, had no major theatrical releases in the holiday quarter. The television studio, meanwhile, was hit by the timing of content renewals with its revenue sliding 18%.
Warner Bros' television network group, Discovery Linear Networks, saw a continued erosion of its business amid an industry-wide loss of pay TV subscribers.
The television unit's revenue fell to $4.2 billion, down 12% from a year earlier, and adjusted income dropped to $1.4 billion, a 27% plunge from the same quarter a year earlier.
Investor attention is likely to be focused on any clues that may be gained about the deal discussions.
Warner Bros' board has said it has not determined whether the revised Paramount proposal is superior to the merger with Netflix, but that directors will engage further. Should a superior deal emerge, Netflix has four business days to revise its offer.
(Reporting by Dawn Chmielewski in Los Angeles and Harshita Mary Varghese in Bengaluru; Editing by Edwina Gibbs)
Key Takeaways
- •Quarterly revenue fell 6% to nearly $9.5B, broadly matching LSEG estimates.
- •HBO Max added 3.5M subscribers to 131.6M; streaming revenue rose 5% to about $2.8B while adjusted earnings dipped 4% to $393M after a distribution deal ended.
- •Film and TV studio adjusted income declined 23% to $728M; no major holiday-quarter theatrical releases and TV renewals timing weighed on results.
- •Discovery Linear Networks revenue fell 12% to $4.2B, with adjusted income down 27% to $1.4B amid continued pay-TV erosion.
- •Investors focus on deal discussions as the board weighs a revised Paramount Skydance proposal against an existing Netflix agreement; Netflix has four business days to respond if a superior offer emerges.
Frequently Asked Questions about Warner Bros posts 6% fall in quarterly revenue, deal talks in focus
1What did Warner Bros Discovery report this quarter?
The company posted a 6% decline in quarterly revenue to nearly $9.5 billion, reflecting weakness in traditional TV and film. Results were roughly in line with LSEG consensus, while investors monitored potential deal activity.
2How did its streaming business perform?
HBO Max added 3.5 million subscribers, bringing the global base to 131.6 million. Streaming revenue rose about 5% to nearly $2.8 billion, though adjusted earnings slipped due to the end of a distribution deal.
3What deal talks are drawing investor attention?
The board is evaluating a revised proposal from Paramount Skydance alongside an existing agreement with Netflix. If a superior offer emerges, Netflix has four business days to revise its bid.
