Warner Bros. Discovery reported Q2 2026 earnings Thursday that showed the sharpest internal split in the company's history: a studio division in freefall and a streaming operation accelerating past projections.
Total company revenue fell 11% to $8.7 billion. Overall profit collapsed 91% to $149 million. Investors sent the stock up 1.9% anyway. The market knows where the value is being built.
That answer is Max. The streaming division posted a 75% profit surge to $512 million, with revenue rising 10% to $3.08 billion. The service is now targeting more than 150 million subscribers by year-end. Ad-supported tiers account for 40% of the global subscriber mix, up 11% year over year, with more than half of new subscribers choosing ad-lite plans.
The studio side told a different story. Revenue dropped 39% to $2.33 billion, and theatrical revenue fell 46%, according to The Wrap. Supergirl and The Bride both underperformed, according to The Hollywood Reporter, facing punishing comparisons to Q2 2025's A Minecraft Movie and Sinners.
CEO David Zaslav addressed the shortfall directly. "While a handful of recent films have underperformed expectations, importantly, we've spent years transforming and diversifying our studio segment to better manage risk and volatility," he said.
The second half carries more weight now. WBD's remaining 2026 slate includes Dune: Messiah, Practical Magic 2, Tom Cruise's Digger, and the animated The Cat in the Hat. A March 2027 trial will determine the fate of the company's planned merger with Paramount Skydance. Zaslav said he has "every expectation that the transaction will close."
