Warner Bros. Discovery reported Q2 2026 revenue of $8.7 billion on August 6, an 11% drop from a year earlier and well below the $9.2 billion analysts had projected. But the company posted diluted earnings of 6 cents per share, beating Wall Street expectations of a 10-cent loss. Deadline

The numbers arrive with a corporate megadeal hanging in the balance. WBD's proposed $110 billion merger with Paramount is in legal limbo after the attorneys general of 12 US states and the Writers Guild of America filed an antitrust lawsuit to block it. A trial is scheduled for March 2027. Paramount CEO David Ellison said he is "absolutely open" to discussing a settlement but believes the company "will win in court."

The streaming division was the bright spot. HBO Max revenue rose 10% to $3.1 billion, with EBITDA (a measure of operating profit before interest, taxes, depreciation and amortisation) jumping 75% to $512 million. The quarter was paced by a strong slate of titles: Euphoria, House of the Dragon, Hacks and The Pitt all drew audiences to the platform.

The studio told a different story. Revenue fell 39% to $2.3 billion, and EBITDA plunged 89% to $96 million. The division was up against a brutal comparison: the same quarter in 2025 had A Minecraft Movie, Sinners and Final Destination Bloodlines all pulling in ticket sales. This year's DC entry, Supergirl, grossed $126 million worldwide, the lowest for any DC release since Catwoman in 2004.

Then there is the NBA-shaped hole. After nearly 40 years of broadcasting NBA games, WBD did not reach a deal to extend its rights. NBCUniversal stepped in as a primary partner. The absence hit hard: total advertising revenue plunged 22% year over year to $1.7 billion. WBD's Global Linear Networks division, its traditional TV channels, saw revenue slide 17% to $3.99 billion, with adjusted EBITDA down 4% to $1.4 billion.

For context, the previous quarter (Q1 2026) had told a gentler story: total revenue of $8.9 billion with only a 3% decline, and streaming growth of 9% to $2.89 billion that beat analyst expectations of a 7.6% rise. Reuters

The contrast between the two quarters is stark. Streaming accelerated, growing a percentage point faster than in Q1. But the loss of NBA advertising and a thin film slate pulled the overall business down harder.

For the people watching — and the crews, writers' rooms and production teams whose work depends on commissioning decisions — the streaming growth matters because it funds the next round of orders. The studio slump matters because it shows how dependent the film calendar is on having a hit in the right window. And the merger's legal limbo matters because a combined WBD-Paramount would reshape which shows get made, and where they end up.