Warner Bros. Discovery Expected to Post Lower 1Q Revenue as Deal With Paramount Remains in Focus -- Earnings Preview

Dow Jones07:00

By Kelly Cloonan

 

Warner Bros. Discovery is scheduled to report its fiscal first-quarter results on Wednesday. Here is what you need to know.

NET INCOME: The media and entertainment company is expected to post a loss of $192.2 million, compared with a loss of $453 million the year before, according to FactSet.

REVENUE: The company is expected to report $8.89 billion in sales, compared with $8.98 billion in the year-ago quarter, according to FactSet.

The stock has ticked down 0.5% during the past three months and closed up Tuesday at $27.22.

WHAT TO WATCH:

-- Paramount in February announced its plan to buy Warner in an $81 billion deal, beating out Netflix after a lengthy bidding war. Last month, Warner's shareholders approved the sale, which is pending regulatory review.

-- Analysts will be paying close attention to further commentary from Warner on the deal, or on expectations for when it could close. Paramount on Monday said it is on track to close the deal by the end of the third quarter. Paramount last month sought approval from the Federal Communications Commission for Persian Gulf sovereign-wealth funds to take a substantial equity stake in the company as part of the acquisition. The request represents one more potential hurdle for Paramount as it seeks to close the deal.

-- Warner recorded declines across each of its segments in the fourth quarter, with distribution and advertising revenue both down as a continued slide in linear TV subscribers more than offset gains in streaming subscribers. Content revenue also fell, driven by the timing of renewals in its studios and global linear networks segments, the company said at the time. Analysts will be looking to see if those trends continue in the current quarter.

 

Write to Kelly Cloonan at kelly.cloonan@wsj.com

 

(END) Dow Jones Newswires

May 05, 2026 19:00 ET (23:00 GMT)

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