WBD Stock Forecast & Price Target

Warner Bros. Discovery (WBD) demonstrated significant growth in its direct-to-consumer segment, reporting 116.9 million global subscribers at the end of 4Q24, up 20% year-over-year, alongside a 5% increase in DTC revenues to $2.7 billion. The company's advertising revenue in the DTC space surged 26% year-over-year, highlighting increased engagement and a larger ad-lite subscriber base, which contributed to a substantial EBITDA of $409 million, marking a turnaround from a prior EBITDA loss. Overall, there are strong projections for revenue growth, with estimates of $39.3 billion for 2025 and $40.5 billion for 2026, reinforced by positive performance in the studios segment, suggesting robust operational profitability.

Warner Bros. Discovery reported fourth-quarter revenues of $10.0 billion, which represented a 2% year-over-year decline and fell short of expectations, alongside an adjusted EBITDA of $2.7 billion, showing only a marginal increase despite falling revenues. The networks segment faced significant challenges, with a 5% drop in revenue to $4.8 billion and a 13% decrease in adjusted EBITDA, while overall cash from operations decreased by 24%, indicating weakened financial performance. The company's strategic outlook for FY26 has been lowered, projecting stagnant revenue and worsening earnings per share, reflecting ongoing pressures within the TV network business segment and declining ad revenues.