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The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $9.46 billion, indicating a decline of 5.7% year over year.
The consensus mark for loss is pegged at 8 cents per share, a substantial growth from the year-ago quarter’s reported loss of 20 cents. The estimate has moved south by 11.1% over the past 30 days.
In the last reported quarter, the company delivered a negative earnings surprise of 50%. The company’s earnings beat the Zacks Consensus Estimate once in the trailing four quarters and missed the estimates in the remaining three quarters, the average negative surprise being 51.56%.
The quarter unfolded against a backdrop of significant strategic upheaval, operational transitions, and both cyclical tailwinds and structural headwinds — making the investment case for WBD a nuanced one.
On the positive side, streaming momentum is expected to have carried into the to-be-reported quarter. Coming off 128 million global subscribers at the end of the third quarter, the company had signaled that its password-sharing conversion initiative — which it described as still in its early innings — would deliver meaningful benefits in fourth-quarter 2025 and into 2026. The content slate was also expected to support engagement, with titles including One Battle After Another and other Warner Bros. Pay-One films arriving on HBO Max in the quarter, reinforcing the platform's value proposition heading into the critical holiday season. Additionally, management had guided for approximately $100 million in sports cost relief in fourth-quarter 2025 as the NBA rights overlap began to ease, representing a meaningful step toward the larger tailwind anticipated in 2026.
However, the linear networks segment continued to weigh on consolidated results. Domestic advertising revenues remained under pressure from persistent audience declines, while pay-TV subscriber erosion showed no signs of abating. The residual impact of the HBO Max domestic distribution deal renewal — which had dampened distribution revenues through the second half of 2025 — is also expected to have lingered into the fourth quarter.
Perhaps the most significant development during the quarter was the extraordinary wave of corporate activity. In October 2025, WBD signaled it was exploring a broad range of strategic alternatives. A bidding war ensued in November, culminating in Netflix (NFLX - Free Report) announcing a definitive agreement in December 2025 to acquire WBD's Streaming & Studios division for approximately $82.7 billion in enterprise value. While the deal added a premium valuation floor, the pending transaction introduced uncertainty around deal closure, regulatory review, and the standalone trajectory of the soon-to-be-separated Discovery Global networks business.
Given these crosscurrents, investors may find it prudent to hold or wait for further clarity before establishing or adding to positions in WBD.
What Our Model Indicates
According to the Zacks model, 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. But that’s not the case here.
WBD has an Earnings ESP of -126.42% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Credo Technology Group is set to report third-quarter fiscal 2026 results on March 2. The Zacks Consensus Estimate for the third-quarter earnings is pegged at 96 cents per share, revised upward by 18 cents over the past 30 days. Estimates for Credo Technology Group’s EPS for the third quarter indicate a year-over-year increase of 284%.
MongoDB (MDB - Free Report) is set to report fourth-quarter fiscal 2026 results on March 2. The stock has an Earnings ESP of +0.05% and presently sports a Zacks Rank #1.
The Zacks Consensus Estimate for MongoDB’s fourth-quarter earnings has remained unchanged at $1.47 per share over the past 60 days. The consensus estimate for MongoDB’s EPS for the fourth quarter implies a year-over-year increase of 14.8%.
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WBD Gears Up to Report Q4 Earnings: How to Play the Stock
Key Takeaways
Warner Bros. Discovery (WBD - Free Report) is slated to report fourth-quarter 2025 results on Feb. 26.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $9.46 billion, indicating a decline of 5.7% year over year.
The consensus mark for loss is pegged at 8 cents per share, a substantial growth from the year-ago quarter’s reported loss of 20 cents. The estimate has moved south by 11.1% over the past 30 days.
In the last reported quarter, the company delivered a negative earnings surprise of 50%. The company’s earnings beat the Zacks Consensus Estimate once in the trailing four quarters and missed the estimates in the remaining three quarters, the average negative surprise being 51.56%.
Netflix, Inc. Price and EPS Surprise
Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote
Factors Shaping Upcoming Results of WBD
The quarter unfolded against a backdrop of significant strategic upheaval, operational transitions, and both cyclical tailwinds and structural headwinds — making the investment case for WBD a nuanced one.
On the positive side, streaming momentum is expected to have carried into the to-be-reported quarter. Coming off 128 million global subscribers at the end of the third quarter, the company had signaled that its password-sharing conversion initiative — which it described as still in its early innings — would deliver meaningful benefits in fourth-quarter 2025 and into 2026. The content slate was also expected to support engagement, with titles including One Battle After Another and other Warner Bros. Pay-One films arriving on HBO Max in the quarter, reinforcing the platform's value proposition heading into the critical holiday season. Additionally, management had guided for approximately $100 million in sports cost relief in fourth-quarter 2025 as the NBA rights overlap began to ease, representing a meaningful step toward the larger tailwind anticipated in 2026.
However, the linear networks segment continued to weigh on consolidated results. Domestic advertising revenues remained under pressure from persistent audience declines, while pay-TV subscriber erosion showed no signs of abating. The residual impact of the HBO Max domestic distribution deal renewal — which had dampened distribution revenues through the second half of 2025 — is also expected to have lingered into the fourth quarter.
Perhaps the most significant development during the quarter was the extraordinary wave of corporate activity. In October 2025, WBD signaled it was exploring a broad range of strategic alternatives. A bidding war ensued in November, culminating in Netflix (NFLX - Free Report) announcing a definitive agreement in December 2025 to acquire WBD's Streaming & Studios division for approximately $82.7 billion in enterprise value. While the deal added a premium valuation floor, the pending transaction introduced uncertainty around deal closure, regulatory review, and the standalone trajectory of the soon-to-be-separated Discovery Global networks business.
Given these crosscurrents, investors may find it prudent to hold or wait for further clarity before establishing or adding to positions in WBD.
What Our Model Indicates
According to the Zacks model, 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. But that’s not the case here.
WBD has an Earnings ESP of -126.42% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Credo Technology Group (CRDO - Free Report) has an Earnings ESP of +3.54% and presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Credo Technology Group is set to report third-quarter fiscal 2026 results on March 2. The Zacks Consensus Estimate for the third-quarter earnings is pegged at 96 cents per share, revised upward by 18 cents over the past 30 days. Estimates for Credo Technology Group’s EPS for the third quarter indicate a year-over-year increase of 284%.
MongoDB (MDB - Free Report) is set to report fourth-quarter fiscal 2026 results on March 2. The stock has an Earnings ESP of +0.05% and presently sports a Zacks Rank #1.
The Zacks Consensus Estimate for MongoDB’s fourth-quarter earnings has remained unchanged at $1.47 per share over the past 60 days. The consensus estimate for MongoDB’s EPS for the fourth quarter implies a year-over-year increase of 14.8%.