Quick Summary
- First-quarter adjusted EPS reached $0.23, surpassing Wall Street’s $0.15 projection; total revenue climbed 2% to $7.35 billion
- Paramount+ subscriber count increased 2% to 79.6 million, falling marginally short of the anticipated 79.9 million
- TV Media division saw revenue plummet 19% to $3.67 billion, significantly exceeding the projected 9.5% contraction
- Second-quarter revenue outlook of $6.75–$6.95 billion fell below analyst expectations of $7.07 billion
- The pending $81 billion Warner Bros. Discovery merger continues advancing toward a targeted Q3 2026 completion
Paramount Skydance (PSKY) stock surged up to 4% during after-hours trading Monday following the company’s better-than-anticipated first-quarter financial performance. By Tuesday’s premarket session, shares stood 1.5% higher at $11.30, although they’ve declined 17% year-to-date.
Paramount Skydance Corporation Class B Common Stock, PSKY
The company delivered adjusted earnings per share of $0.23, comfortably exceeding the Wall Street consensus of $0.15. Total revenue increased 2% to reach $7.35 billion, topping forecasts of $7.28 billion.
This marked the media giant’s initial quarterly report following its successful February bid to acquire Warner Bros. Discovery.
Streaming operations emerged as the standout performer. The direct-to-consumer division generated revenue growth of 11%, reaching $2.4 billion. Within that segment, Paramount+ delivered particularly impressive results with revenue jumping 17% to $1.97 billion.
Subscription figures landed marginally below projections. Paramount+ concluded the quarter with 79.6 million paid subscribers, representing 2% annual growth but missing the 79.9 million target. Management attributed expansion to popular programming including “Landman,” “The Madison,” and “Marshals.”
The film studios division similarly delivered positive momentum, with revenue advancing 11% to $1.28 billion, propelled by the box office performance of “Scream 7.”
Legacy Television Business Remains Challenging
Conventional television operations continue facing headwinds. The TV Media segment experienced a 19% revenue decline to $3.67 billion—substantially worse than the 9.5% decrease Wall Street had anticipated. Both advertising income and affiliate fees contributed to the shortfall.
This reflects the persistent structural headwind confronting traditional media companies. Viewer migration toward streaming platforms continues unabated, with advertising expenditures following suit.
Second Quarter Outlook Falls Short
For the upcoming quarter, management projected revenue between $6.75 billion and $6.95 billion. The midpoint of this forecast trails the $7.07 billion consensus among analysts.
Executives attributed the conservative guidance to challenging year-over-year comparisons against robust theatrical performance during the prior-year period.
Adjusted EBITDA for Q2 is anticipated to land between $900 million and $1 billion, surpassing analyst projections of $861.8 million.
Full-year 2026 targets remained unchanged: $30 billion in total revenue and $3.8 billion in adjusted EBITDA.
Paramount additionally indicated that Paramount+ subscriber additions will remain “flattish” sequentially in Q2. The company is strategically exiting approximately 2 million international hard bundle subscriptions as part of portfolio optimization.
The Warner Bros. Discovery transaction, carrying an $81 billion valuation, secured shareholder approval on April 23. Management reiterated Monday its expectation to finalize the combination by the conclusion of Q3 2026, contingent upon regulatory clearance.
CEO David Ellison emphasized in his shareholder communication that the merged entity intends to distribute 30 theatrical releases annually post-transaction.
Paramount faces direct competition from Netflix and Disney+ in the streaming arena, and the Warner merger would incorporate HBO Max into its streaming portfolio.
Regulatory authorities continue reviewing the proposed deal, though Monday’s announcement provided no additional updates regarding the approval timeline.
