Warner Bros. Discovery, Inc. (WBD)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Warner Bros. Discovery with Graham's caution and Buffett's interest in turnarounds only when the balance sheet can survive the waiting. The company owns streaming, studios, and linear networks. The reported record is uneven. Revenue fell from $41.3B in fiscal year 2023, the year ended 2023-12-31, to $39.3B in fiscal year 2024, the year ended 2024-12-31, and $37.3B in fiscal year 2025, the year ended 2025-12-31. Net income swung from -$3.1B in fiscal year 2023 to -$11.3B in fiscal year 2024, then to $727.0M in fiscal year 2025. More recently, fiscal Q1 2026, the quarter ended 2026-03-31, showed revenue of $8.9B and a net loss of $2.9B; fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $8.7B and net income of $149.0M, or $0.06 diluted EPS. That is not stable owner earnings. The studio and HBO brands are durable assets, but the revenue decline and weak ROCE suggest brand strength rather than a wide moat. At the 2026-10-05 close of $30.95, FairStock's TTM FCF is $2.2B, a 2.8% FCF yield. FairStock's P/B is 2.36 against negative ROE of -8.79%, and ROCE is just 1.71%. Debt/equity is 0.94, and the Altman Z-Score of 0.59 signals financial fragility. The Piotroski F-Score of 6/9 is middling, and EV/EBITDA of 7.83 is not demanding if earnings normalize, but the FairStock P/E is negative at -24.18 because trailing EPS is -$1.28. FairStock calls this a TURNAROUND because it returned to profit after a loss within the last three years, and its FairStock Score is 52/100. At $30.95, the market already pays for a successful turnaround. I would need evidence of durable streaming profits, slower linear decline, and debt reduction before seeing a margin of safety.

In plain English: Warner Bros. Discovery is a media company that runs streaming services, movie and TV studios, and traditional TV networks. The business looks weak: sales have been falling and profits have swung between losses and small gains. At $30.95, the stock does not look cheap compared with current profits and cash flow, though it is trying to turn around.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-05 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer