Key Takeaways
- Paramount Skydance (PSKY) unveils Q4 fiscal 2025 financial results following today’s market close on February 25
- Wall Street projects $8.15 billion in revenue, reflecting 2.1% annual growth; anticipated adjusted loss stands at $0.01 per share
- Shares have plummeted 33–35% across the previous three to six months, currently hovering near $10.45
- An intense acquisition battle with Netflix over Warner Bros. Discovery continues, with shareholders scheduled to vote on March 20, 2026
- Analysts maintain a Moderate Sell rating on PSKY shares, projecting an average target price of $12.33
Paramount Skydance prepares to unveil its fourth-quarter fiscal 2025 financial performance following today’s closing bell on February 25, but the earnings figures themselves may be overshadowed by the corporate intrigue surrounding the entertainment giant.
Paramount Skydance Corporation Class B Common Stock, PSKY
Wall Street forecasts revenue reaching $8.15 billion, climbing from $7.98 billion during the same period last year. The projected adjusted loss of $0.01 per share represents substantial improvement compared to the $0.11 per share deficit recorded in the year-ago quarter. Meanwhile, the net loss is anticipated to expand to $378 million versus $224 million previously.
PSKY has surpassed earnings projections in six out of its most recent eight reporting periods, establishing a pattern of exceeding expectations — although this quarter’s primary narrative extends far beyond financial metrics.
Share prices have experienced significant deterioration. PSKY has declined approximately 33–35% throughout the last three to six months, with shares changing hands around $10.45. Market participants remain anxious regarding the company’s aggressive pursuit of Warner Bros. Discovery and the potential implications for its financial position.
The Battle for Warner Bros. Discovery
Paramount submitted an updated proposal to purchase Warner Bros. Discovery this Tuesday, representing the most recent development in an aggressive competitive process against Netflix. Prior to this modification, PSKY had presented a $30 per share proposal, elevated from its original $19 per share opening bid submitted last September.
Netflix had previously secured an agreement to purchase Warner’s studio operations and streaming properties for $27.75 per share. Warner subsequently reopened negotiations with Paramount following PSKY’s commitment to absorb the $2.8 billion breakup fee owed to Netflix should that transaction dissolve. Should Warner approve Paramount’s modified proposal, Netflix retains matching rights.
Needham analyst Laura Martin contended that a $34 per share proposal from PSKY could definitively conclude the competitive bidding. She observed that Netflix’s financial analysis demonstrates no earnings enhancement beyond $30 per share under her baseline scenario, with the critical consideration being whether Netflix withdraws if Paramount escalates its offer.
Raymond James analyst Ric Prentiss recognizes PSKY gaining traction in its pursuit but highlighted worries surrounding substantial debt financing, with leverage ratios exceeding 6x. He suggested Paramount might need to increase its cash component by $2–$3 per share before presenting a conclusive bid ahead of the March 20 shareholder decision.
Regulatory and Political Complications
Additional complexities exist. President Trump recently insisted that Netflix dismiss Susan Rice, who served as President Obama’s national security advisor, from its board of directors.
The Justice Department has simultaneously broadened its antitrust examination of the proposed Warner-Netflix transaction. Wedbush analysts believe Netflix co-CEO Ted Sarandos has indicated the streaming giant may abandon the deal if Warner embraces Paramount’s updated proposal — potentially exposing PSKY to standalone regulatory challenges.
From an operational perspective, the company continues navigating integration following its August 2025 combination of Paramount Media and Skydance Corporation. The entity established streaming and content collaborations with UFC and the creators behind “South Park” throughout Q3.
The broader analyst community maintains a reserved stance on PSKY. The stock holds a Moderate Sell consensus according to TipRanks — featuring zero Buy recommendations, one Hold rating, and three Sell ratings. The consensus price target stands at $12.33, suggesting approximately 18.7% potential appreciation from present trading levels.
Bernstein analyst Laurent Yoon maintains a Sell rating with a $12 price objective. Barrington analyst Patrick Sholl rates the stock at Hold.
Shareholders will vote on the WBD transaction on March 20, 2026.
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