WBD Set to Report Q3 Earnings: How Should Investors Play the Stock?

Warner Bros. Discovery WBD is slated to report third-quarter 2025 results on Nov. 6. 

The Zacks Consensus Estimate for third-quarter revenues is pegged at $9.18 billion, indicating a decline of 4.64% year over year.

The consensus mark for loss is pegged at 4 cents per share, a substantial decline from the year-ago quarter’s reported profit of 5 cents. The estimate has improved by 4 cents over the past 30 days.

WBD Estimate Movement

WBD Earnings Surprise History

In the last reported quarter, the company delivered an earnings surprise of 171.43%. The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, and missed the estimates in the remaining two quarters, the average positive surprise being 3.8%.

Warner Bros. Discovery, Inc. Price and EPS Surprise

Warner Bros. Discovery, Inc. price-eps-surprise | Warner Bros. Discovery, Inc. Quote

Earnings Whispers for WBD

Our proven model predicts a likely earnings beat for Warner Bros. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

WBD has an Earnings ESP of +35% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping Upcoming Results of WBD

Warner Bros. Discovery entered the third quarter of 2025 with considerable momentum across its theatrical and streaming operations, following a strong second quarter that marked key financial and operational milestones. The Streaming segment delivered its first quarterly profit of $293 million, while Studios' revenues surged 54% year over year, reflecting the success of a revitalised film slate. With net leverage reduced to 3.3x and global streaming subscribers rising by 3.4 million to 125.7 million, WBD entered the period well-positioned for another quarter of strong creative output but uneven segmental performance.

The company’s theatrical portfolio continued to lead the global box office during the quarter. Superman opened to $125 million domestically on July 11, the biggest debut for the DC franchise’s reboot, followed by Final Destination: Bloodlines ($51.6 million), F1 distributed for Apple ($57 million) and Zach Cregger’s Weapons ($43.5 million). This unprecedented streak of seven consecutive $40 million-plus openings positioned Warner Bros. to surpass $4 billion in global box office receipts for 2025, outpacing peers including Disney DIS and Amazon Studios AMZN through the summer season. These results are expected to have translated into substantial Studios revenue and margin expansion.

However, this momentum was likely tempered by persistent softness in the Global Linear Networks segment. Following a 9% sequential decline in domestic pay-TV subscribers and a 13% advertising contraction in the second quarter amid steep audience erosion, linear headwinds are expected to have continued through Q3. The quarter also saw strategic transitions, including the July rebranding of Max back to HBO Max and organizational alignment ahead of the planned 2026 separation into Warner Bros. and Discovery Global. While these shifts may have temporarily affected subscriber acquisition, they underscore WBD’s effort to sharpen its brand focus amid intensifying competition from Netflix NFLX, Disney+ and Amazon Prime Video. Overall, the upcoming results are expected to highlight the company’s theatrical dominance and resilient streaming performance against an increasingly challenging linear backdrop.

Top-Line Growth Estimates for Q3

The Zacks consensus estimate for third-quarter 2025 Studios revenues is pegged at $3.18 billion, indicating 18.8% growth from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Streaming revenues is pegged at $2.74 billion, suggesting a rise of 4.1% from the figure reported in the previous year quarter.

Moreover, the consensus mark for Global Linear Networks revenues is pegged at $3.95 billion, suggesting a decrease of 21.1% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Distribution revenues is pegged at $4.81 billion, indicating a 2.1% decline from the figure reported in the year-ago quarter.

Additionally, the consensus mark for Advertising revenues is pegged at $1.48 billion, suggesting a decline of 11.8% from the figure reported in the previous year quarter.

The Zacks Consensus Estimate for Content revenues is pegged at $2.77 billion, indicating a 2% rise from the figure reported in the year-ago quarter.

WBD Price Performance & Stock Valuation

Shares of WBD have appreciated 110.9% in the year-to-date period, significantly outperforming both its industry and sector peers. The Zacks Broadcast Radio and Television industry has increased 26.3% during the same period, while the broader Consumer Discretionary sector is up 3.3%.

In comparison, Netflix has climbed 23.5%, Amazon is higher by 15.8% and Disney has edged only 0.7% higher.

WBD Outperforms Sector, Peers

Currently, WBD is trading at 1.46X forward 12-month price-to-sales, below the industry average of 4.73X. Netflix stands at 9.33X, Amazon at 3.48X and Disney at 1.99X, positioning Warner Bros. Discovery as the most attractively valued among major media peers on a forward sales basis.

Price-to-Sales (Forward 12 Months)

Investment Considerations:

Warner Bros. Discovery enters its third-quarter results with encouraging operational traction across Studios and Streaming. Box-office strength and streaming profitability mark tangible progress in the turnaround, while debt reduction and steady cash flow reinforce balance sheet stability. However, much of this optimism appears reflected in the stock following its robust year-to-date rally. Persistent linear declines, advertising softness and transitional complexities tied to the HBO Max rebranding and upcoming corporate separation could weigh on near-term performance, tempering upside potential.

Conclusion

WBD’s fundamentals are improving, yet structural challenges and the sharp share appreciation limit near-term reward. Existing holders can maintain positions for long-term value realisation, but prospective investors would benefit from waiting for a more favourable entry point or stronger confirmation of sustained growth momentum beyond third-quarter results.

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This article originally published on Zacks Investment Research (zacks.com).

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