earnings

Warner Bros. Discovery stumbled in the second quarter, demonstrating the hazard of depending heavily on blockbuster returns from its Burbank film studio.

Disappointing performances by “Supergirl” and “The Bride,” drove down quarterly theatrical revenue by 46%. The tepid showing illustrated how the Warner Bros. studio has fallen since last year when it was riding high at the box office with “Sinners,” and “A Minecraft Movie.”

Warner’s lackluster earnings, released Thursday, comes as tech scion David Ellison’s Paramount Skydance remains eager to complete its $111-billion deal to buy Warner Bros. Discovery to combine streaming operations and the storied film studio with Melrose Avenue’s Paramount Pictures.

Overall, profit for Warner Bros. Discovery, which also is the parent of HBO, CNN, TLC and HGTV, plummeted 91% to $149 million, or 6 cents per share, compared to $1.6 billion in the second quarter of 2025 amid the film studio’s blazing run.

The company also fell short of Wall Street expectations for revenue, which sank 11% to $8.7 billion, despite noteworthy gains in its HBO Max streaming business.

Warner missed having NBA games on its TNT channel, which contributed to a 27% drop in advertising to $1.4 billion. The NBA’s departure, and the absence of the NHL Stanley Cup finals, contributed to a 17% ratings decline at Warner’s cable networks.

Chief Executive David Zaslav opted not to renew the pricey basketball contract as Warner has been straining to pay down debt brought on by its last merger in 2022. Instead, NBCUniversal picked up the NBA arrangement.

Warner executives disclosed the company still is carrying about $30 billion in debt.

The company’s earnings revealed continued weakness in the cable television division amid consumer cord-cutting, which has slowed down in recent quarters.

Still, the channels remain a significant part of Warner’s overall revenue and profit picture.

Revenue to the global linear networks, which includes TNT, Discovery and international channels, declined 17% to $4 billion. Adjusted earnings before interest, taxes, depreciation and amortization in that division fell 4% to $1.4 billion.

Despite the gloomy results, Warner’s stock climbed more than 1% in early Thursday trading to $26.25. Investors seemed heartened by news that British authorities have cleared Ellison’s proposed takeover.

Britain’s Competition and Markets Authority found the Paramount-Warner combination would not restrict media competition in Britain.

Warner investors are expecting more than $31 a share should Paramount succeed in its proposed Warner Bros. purchase. The blockbuster acquisition has stalled amid an antitrust challenge filed last month by California Atty. Gen. Rob Bonta and 11 other state attorneys.

Bonta’s coalition, including prosecutors from New York, Colorado, Minnesota and Nevada, contends the deal violates U.S. antitrust law.

“We’re confident this transaction will close,” Zaslav told analysts on an early morning conference call.

Earlier this week, a federal judge scheduled a March 2, 2027 trial — months later than Paramount had hoped — to determine whether the deal should move forward.

Paramount faces a June 4 deadline to wrap up the purchase — or pay a $7 billion breakup fee to Warner.

Warner’s earnings bright spot came from its streaming segment, which includes HBO.

Streaming revenue grew 10% to $3 billion as the company continued its international rollout of HBO Max. The service benefits from Warner films, cartoons and HBO’s critically acclaimed original content including “Euphoria,” “Hacks,” “The Gilded Age” and “A Knight of the Seven Kingdoms,” which debuted earlier this year.

Adjusted earnings before interest, taxes, depreciation and amortization in the streaming division soared 75% to $512 million.

Streaming chief JB Perrette said his division was bullish about next year when HBO will introduce new seasons of “The White Lotus,” “The Last of Us” and “The Pitt.”

Warner executives acknowledged their film studio’s struggles. The company does not break out theatrical revenue figures, but said total revenue for the film and television studios declined 39% to $2.3 billion.

The studios’ adjusted earnings before interest, taxes, depreciation and amortization dropped 89% to $96 million.

Zaslav conceded Warner Bros. would release fewer films this year than it had initially anticipated because some weren’t ready for audiences. The studio should release 14 movies this year but plans to boost its output to 19 next year.

“We’re very confident that we’re going to be able to maintain that larger number,” Chief Financial Officer Gunnar Wiedenfels said on the call.

The studio will rebound, Zaslav said.

“Next year, we’re going to have ‘Lord of the Rings,’ ‘Batman,’ ‘Superman,’ [and] ‘Minecraft’ too,” Zaslav said. “Our overall philosophy [is] making sure that we bring the motion picture to the market when the film is ready.”

Ellison, in his bid for Warner Bros., has promised regulators that the combined studio would release 30 films a year — an amount that some experts believe is overly ambitious.

Late Wednesday, Regal Global Entertainment Chief Executive Eduardo Acuna cited Ellison’s commitment to a strong pipeline in announcing his theater chain’s support for the Paramount-Warner Bros. merger.

“We need a thriving studio system to ensure that the industry has a platform from which to grow,” Acuna said in a statement. “I believe David is sincere in making these commitments, and he has offered to execute a consent decree to the State AGs. These are tangible and important commitments that will benefit the industry.”

Staff writer Samantha Masunaga contributed to this report.

Financial companies remained in the spotlight this week as investors digested quarterly results from payment companies, insurers, exchanges, brokers, and asset managers.

Major names including PayPal (PYPL), Visa (V), Robinhood (HOOD), S&P Global (

SACRAMENTO — California Gov. Gavin Newsom and his wife, documentary filmmaker Jennifer Siebel Newsom, have earned at least $11 million since he took office, with most of their income coming from wineries, restaurants and other investments, according to tax returns from 2019 through their most recent filings for 2024.

The tax records show the couple has earned between $1.4 million and $3.5 million per year, putting them in the upper echelon of Americans when it comes to annual income.

Newsom allowed reporters on Thursday to view four years of the couple’s jointly filed tax returns after receiving criticism for not disclosing his filings since he last released the information for the tax year 2020.

The release of the tax records comes just weeks after Newsom accused the Department of Justice of launching — at President Trump’s request — a baseless and politically motivated investigation into him and his wife, including her business interests and charity work. The governor said the probes, which federal officials have not confirmed, were a personal vendetta launched because he’s considering a run for president in 2028.

Siebel Newsom leads the Representation Project, a nonprofit that advocates for gender equity through film and education programs, and Girls Club Entertainment, a for-profit production company she owns that holds the copyrights to her documentaries. The nonprofit has faced criticism for accepting donations from companies that lobby the governor, including Pacific Gas & Electric Co. and AT&T.

The tax records released Thursday showed that her salary from the Representation Project was $145,000 to $150,000 annually from 2021 though 2024, similar to prior years. While Girls Club paid her $100,000 in 2021, and $11,700 in 2022, she did not report any income from the production company in the two years that followed.

The governor’s office, in a summary of the tax returns provided to reporters, stated that financial documents contradict “the FALSE right-wing claims that the Newsoms ‘enriched themselves’ through new ventures and nonprofit organizations.”

The memo stated that their income has declined since Newsom became governor. The tax records also show that Girls Club Entertainment has been losing money in recent years.

The governor signed a law during his first year in office to require presidential and gubernatorial candidates to release five years of tax returns to appear on the primary ballot. Democrats passed the law in response to Trump’s refusal to make the information public.

Less than six months later, the California Supreme Court struck down the portion that required presidential candidates to comply with the law. Gubernatorial candidates are still required to disclose their tax filings during election season.

Though tax returns became a flash point in the California vs. Trump political saga, Democrats have for decades demanded that candidates for governor and president release their income tax filings.

Presidential candidates dating back to the Nixon administration routinely shared their filings, with only President Ford and Trump refusing to do so. Former Democratic Gov. Jerry Brown and his Republican opponents also declined to share their tax returns before the 2010 and 2014 California gubernatorial elections.

Newsom released his tax returns during his campaigns for governor in 2018 and 2022, again in 2020 and before he beat a recall election in 2021. California candidates, elected officials, judges and some public employees also file annual economic interest statements.

“In the interest of transparency, he’s now voluntarily making all remaining filed tax returns available — going beyond what the law requires — as part of his longstanding commitment to transparency,” said Izzy Gardon, a spokesperson for the governor, in a statement.

The governor and his wife put their investments in a blind trust when he took office. Their earnings, which have totaled more than $1 million per year since at least 2011, stem from investments in wineries, restaurants, bars, hotels and hospitality management companies based in San Francisco, Napa Valley, and Lake Tahoe, according to economic interest disclosures filed with the state.

The latest batch of tax returns covers 2021 through 2024. Reporters were allowed to view, but not copy, more than 700 pages of tax records at the governor’s office in Sacramento on Thursday. Their 2025 tax returns were not available because, as he has done most years, the governor filed for an extension with the Internal Revenue Service and he doesn’t expect to file until October.

The couple’s reported income was the highest in 2021, when they sold their home in Kentfield, a wealthy enclave in Marin County, for $5.9 million. The Newsoms reported receiving more than $55,000 in rent for leasing out the home that same year, but declared an overall loss for tax purposes of $70,000 due to their mortgage payments, taxes, legal fees and depreciation.

The family previously moved to a mansion in Fair Oaks that they purchased for $3.7 million in 2019 following a brief residence at the Governor’s Mansion in downtown Sacramento.

The family kept the Fair Oaks home and purchased another $9.1-million estate in Marin County in 2024, where they primarily live and their four children attend school. Newsom and his wife also spend time in Fair Oaks while working at the state Capitol.

During those four years, Newsom and Siebel Newsom paid a high of $1,253,187 in federal income taxes in 2021, and a low of $488,821 in 2023. Their state tax income bill ranged from $34,307 to $213,331 during that time. The annual property tax bills hovered between $48,000 and $64,300 over that span.

The governor’s income included his government salary, which ranged from $167,647 in 2021 to $192,087 in 2024.

Newsom also was paid more than $150,000 during that period as an author. In recent years, Newsom has published a book for children with dyslexia and a memoir, “Young Man in a Hurry.”

The tax returns showed the family paid from $154,000 to almost $200,000 each year for household employees from 2021 through 2024. The returns showed that they paid for Social Security coverage, Medicare and the state’s unemployment benefits fund as part of those expenses.

The governor and his family donated more than $200,000 to charity from 2021 to 2024. While most of those donations were in cash, they also gave $4,900 in “Armani Business Wear” to the Oakland nonprofit organization Restorative Justice, and toys, furniture, appliances, books and other goods to Goodwill in Sacramento.

Among their listed expenses in 2021 was $3,542 in storage costs for silver and platinum holdings. Previously, the couple made nearly a half-million dollars trading silver bars in 2011 alone.

SEOUL, July 30 (UPI) — South Korea’s SK hynix posted record earnings in the second quarter of this year amid the AI boom. However, shares of the world’s No. 2 memory chipmaker have continued to plunge on the Seoul bourse.

The company noted Wednesday that it logged sales of $55.1 billion and operating profit of $42.1 billion during the April-June period. Revenue more than tripled from a year ago, while profit increased more than sixfold.

“Driven by sustained demand growth from expanding AI infrastructure investments, high-performance products for AI servers led price increases, enabling the company to surpass its previous record set in the prior quarter,” SK hynix said in a statement.

“With major tech companies increasing their AI infrastructure investments, additional supply requests continue to mount. As these investments are supported by revenue generated from AI services, the momentum in memory demand is expected to persist,” it added.

Despite the stellar performance and solid outlook, its shares have struggled to find their footing on the Korea Exchange. They fell 14.65% on Monday before dropping another 9.61% on Wednesday and 5.64% on Thursday.

Since reaching a record high in late June, SK hynix’s market capitalization has fallen by more than half in just over a month. This came after its shares had surged more than tenfold in the year through late June.

Observers attribute the bearish run to a combination of factors, including lower-than-expected earnings, concerns over the sustainability of the AI boom and the emergence of Chinese competitors such as recently listed CXMT.

Although SK hynix chalked up a record bottom line in the previous three months, the figure came in about 5% lower than the market consensus. There are also questions over whether SK hynix has secured sufficient long-term agreements, or LTAs, with customers to reduce uncertainty about future earnings.

“The market remains skeptical about LTAs, so we believe it will take time for confidence to build,” NH Investment & Securities analyst Ryu Young-ho said in a report, reducing his target price for SK hynix by 17.1%.

Other brokerage houses, including Shinhan Securities, Hanwha Investment & Securities, and Samsung Securities, also followed suit.

“We revised down our operating profit estimates for SK hynix for 2026 and 2027 by 7% and 9%, respectively, to reflect a more conservative price outlook,” Shinhan Securities analyst Kim Hyung-tae said in a report, cutting his target price by 35.7%.

However, some experts remained optimistic, raising their target prices on expectations that SK hynix shares will eventually rebound.

“The main reason second-quarter operating profit fell short of the market consensus was that DRAM price growth was weaker than expected,” Korea Investment & Securities analyst Chae Min-sook said.

“However, this was caused not by slowing demand, but by the postponement of some shipments, which should instead contribute to improved earnings in the third quarter,” Chae added, raising the target price by 24%.

DB Securities came up with a similar view.

Leveraged ETFs tied to memory chipmakers

Also at the center of controversy are leveraged exchange-traded funds, or ETFs, linked to individual stocks. They debuted in late May and are tied to the shares of the country’s two blue-chip companies, Samsung Electronics and SK hynix.

Investors have complained of heavy losses. Samsung, the world’s top memory chipmaker, has also seen its share price plummet in recent weeks.

Against this backdrop, critics argue that the new products have amplified market volatility by encouraging short-term speculative trading. Over the past two months, KOSPI circuit breakers have been triggered repeatedly by sharp market swings.

Because these products magnify both gains and losses, they tend to attract retail investors seeking quick profits, potentially leading to larger price swings during periods of market uncertainty, according to experts.

During a parliamentary session on Wednesday, lawmakers summoned top financial officials to criticized the leveraged products and the market slump.

“The government has encouraged people to sell their real estate and invest in stocks. But after the stock market crashed, retail investors ended up suffering heavy losses,” Rep. Park Jun-tae from the main opposition People Power Party said.

In response, Financial Services Commission Chairman Lee Eog-weon promised to do everything possible to minimize market-related volatility but failed to present specific measures.

“South Korean equities have been buoyed by the strong performances of memory chipmakers. But the rally overshot because of a few factors, including the debut of the single-stock 2x leveraged ETFs,” economic commentator Kim Kyeong-joon, formerly vice chairman at Deloitte Consulting Korea, told UPI.

“Once market sentiment turned bearish, the leveraged ETFs accelerated the market’s decline. The problem is that the products cannot simply be abolished because doing so would create even greater market disruption,” he added.

Industrial stocks grabbed the spotlight this week as Wall Street digested earnings reports from companies including Lockheed Martin Corporation (LMT), 3M Company (MMM), RTX (RTX), and Honeywell Technologies (HON).

The industrial sector (XLI) has gained over 17.8% so far this

Netflix stock plunged 9% on Friday morning to $67.74 a share, after the streamer’s second quarter earnings report renewed concerns among investors and analysts about the streamer’s future growth.

The Los Gatos-based company on Thursday narrowed its 2026 forecast to $51 billion to $51.4 billion from $50.7 billion to $51.7 billion, causing equity analysts to cut their estimates. The stock reached a new 52-week low on Friday and is down 49% from a year ago.

“This outlook likely reinforces investor concerns,” wrote analysts from Guggenheim Securities in a research note on Friday, which has a “buy” rating on the stock.

Netflix did not immediately respond to a request for comment on its declining stock price.

Investors have been skittish about the amount of time people spend on the streaming platform. Netflix’s share of TV viewing time in the U.S. has steadily declined in recent months as YouTube has gained market share, according to Nielsen data.

Investors are concerned that if people spend less time watching Netflix, it could cause people to cancel their subscriptions and make it more challenging for Netflix to raise prices in markets like the U.S.

Netflix said engagement is healthy on its platform and its programs continue to draw large audiences with popular shows like crime drama series “I Will Find You.”

Netflix said subscribers watched more than 97 billion hours on the streaming service in the first half of the year, up 2% from a year ago.

“We are increasingly concerned that younger generations are less interested in long form content as their time migrates to ‘free’ social media platforms,” wrote Jeffrey Wlodarczak, CEO of Pivotal Research Group in a report on Friday, who has a hold recommendation on Netflix stock. “We believe this will result in slower subscriber growth and attempts by the company to offset this via more aggressive price increases and investment in content.”

Netflix executives in a Thursday earnings presentation emphasized that measuring engagement at the company goes beyond hours spent watching the streaming service.

“There is not a linear relationship between view hours and revenue and profit because all hours are not created equal,” said Greg Peters, Netflix co-CEO on an earnings presentation on Thursday. “All hours don’t provide the same kind of value to the business.”

The streamer said it plans to allocate just over 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign-up days over the last five years, the company said, even though it makes up roughly 1% of overall watch time this year.

The company is also diversifying the content it offers on its platform, adding live sports games and video podcasts, in addition its large library of TV shows and movies.

Netflix revenue rose 13% to $12.6 billion in the second quarter. Net income was $3.4 billion, up 9% from a year ago.

The company said its advertising business is on track to reach $3 billion in revenue this year, double the amount in 2025.

Published on
13/07/2026 – 12:23 GMT+2

TSMC said on Monday that June revenue rose 67.9% year on year to NT$398.27 billion (€10.8bn), bringing the first-half of the year revenue to NT$2.4 trillion (€65.4bn), a 35.6% increase from the same period in 2025.

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Based on the company’s monthly revenue disclosures, second-quarter revenue amounted to roughly NT$1.27 trillion, ahead of the NT$1.264 trillion (€34.4bn) consensus forecast from 20 analysts surveyed by LSEG.

Monday’s release covers June revenue and cumulative first-half sales only.

TSMC will publish its full second-quarter earnings on Thursday, including net profit, gross margin, operating margin and updated financial guidance.

The road ahead

At its April earnings presentation, TSMC said it expects full-year 2026 revenue to grow by more than 30% in US dollar terms and projected capital expenditure of between $52 billion (€45.5bn) and $56 billion (€49bn) as it expands manufacturing capacity to meet AI-driven demand.

New fabrication plants are under construction or in preparation in Arizona, Japan and Germany, reflecting both the scale of customer demand and government efforts to strengthen domestic semiconductor manufacturing.

Shares in TSMC rose about 1% following Monday’s revenue update.

Investors will now turn their attention to Thursday’s full earnings report for updates on profitability, margins, full-year guidance and the rollout of the company’s two-nanometre manufacturing technology, which is already attracting strong customer interest.

The AI engine

The company sits at the centre of one of the largest investment cycles in the semiconductor industry’s history.

Many of the world’s leading AI processors, including Nvidia’s GPUs and much of the custom AI silicon designed by Amazon, Google and Microsoft, are manufactured by TSMC in Taiwan.

At the company’s April earnings presentation, CEO Che-Chia Wei described AI demand as “extremely robust”, driven by the shift from chatbots that answer questions to agentic AI systems capable of taking actions.

That transition requires significantly greater computing power, increasing demand for the advanced chips TSMC manufactures.

Advanced technologies, defined as chips produced using process technologies of seven nanometres or smaller, accounted for 74% of wafer revenue in the first quarter.

TSMC’s three-nanometre technology alone contributed 25% of wafer revenue.

Reports have indicated that Nvidia has reserved roughly 60% of TSMC’s advanced chip-packaging capacity for 2026, highlighting continued supply constraints across the AI semiconductor market.

South Korean stocks soared by more than 5 percent Thursday, briefly topping the 9,000-point level again, driven by a tech rally ignited by U.S. chip giant Micron Technology’s expectation-beating earnings report. The Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 459.28 points, or 5.42 percent, to close at 8,930.30, following a 3.26 percent gain the previous day.

The index briefly topped the 9,000-point threshold, rising as high as 9,044.04.

Finishing at an all-time high of 9,114.55 on Monday, the KOSPI has remained in the 8,000-point range since it dived 9.99 percent Tuesday.

The index pulled off a strong start, with a buy-side sidecar issued shortly after the market opened, as Micron, the world’s No. 3 memory chipmaker, released its stronger-than-expected quarterly earnings, brushing off lingering concerns about the sustainability of an artificial intelligence (AI) rally.

Micron is a major beneficiary of the AI infrastructure spending boom along with Samsung Electronics and SK hynix thanks to rising demand for memory chips and high-bandwidth memory (HBM).

Trade volume was heavy at 449.3 million shares worth 50.4 trillion won (US$32.7 billion), with losers beating winners 588 to 289.

Institutions purchased a net 3.3 trillion won worth of stocks, while foreigners and individuals dumped a net 819.7 billion won and 2.5 trillion won, respectively.

“Micron’s strong financial report pushed up semiconductor shares here,” Kim Seok-hwan, an analyst at Mirae Asset Securities, said. “Airline shares also rose as the Strait of Hormuz seemed to reopen and global oil prices dropped.”

Samsung Electronics, the world’s largest memory chipmaker, jumped 5.29 percent to 358,500 won, and No. 2 SK hynix surged 13.06 percent to 2.9 million won.

SK Square, the parent of SK hynix, advanced 5.56 percent to 1.9 million won, and Samsung C&T, which holds a stake in Samsung Electronics, soared 7.79 percent to 519,000 won.

Flag air carrier Korean Air vaulted 6.4 percent to 29,100 won, and Asiana Airlines mounted 6.2 percent to 7,710 won.

Brokerages were also strong as Samsung Securities rose 3.07 percent to 110,800 won, and Kiwoom Securities gained 7.48 percent to 337,500 won.

The Korean won was quoted at 1,542.7 won per U.S. dollar as of 3:30 p.m., down 0.9 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.5 basis points to 3.757 percent, and the return on the benchmark five-year government bonds declined 2.2 basis points to 3.992 percent.

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