Key Highlights
- Q1 adjusted earnings reached $0.23 per share, surpassing Wall Street’s $0.15 projection; total revenue climbed 2% to $7.35 billion
- Paramount+ platform expanded to 79.6 million subscribers, marking a 2% increase but falling short of the anticipated 79.9 million
- Traditional TV Media segment plunged 19% to $3.67 billion, significantly worse than the predicted 9.5% contraction
- Second-quarter revenue projection of $6.75–$6.95 billion came in below analyst expectations of $7.07 billion
- The company’s $81 billion Warner Bros. Discovery merger continues progressing toward an anticipated Q3 2026 completion
Shares of Paramount Skydance (PSKY) climbed up to 4% during Monday’s extended trading session following the entertainment giant’s better-than-expected first-quarter financial performance. By Tuesday’s premarket hours, shares traded 1.5% higher at $11.30, although the stock has declined 17% year-to-date.
Paramount Skydance Corporation Class B Common Stock, PSKY
The company delivered adjusted earnings of $0.23 per share, comfortably exceeding the Street’s $0.15 estimate. Total revenue expanded 2% year-over-year to reach $7.35 billion, topping the $7.28 billion consensus figure.
This marked the first quarterly report since the company emerged victorious in its February acquisition battle for Warner Bros. Discovery.
Streaming operations delivered the strongest performance. Direct-to-consumer segment revenue jumped 11% to $2.4 billion. The Paramount+ streaming platform specifically generated $1.97 billion in revenue, representing 17% growth.
Subscriber metrics fell marginally below projections. Paramount+ concluded the quarter with 79.6 million paying subscribers, reflecting 2% annual growth but missing the 79.9 million analyst forecast. Management attributed subscriber gains to popular programming including “Landman,” “The Madison,” and “Marshals.”
The studios division also delivered positive results, with revenue advancing 11% to $1.28 billion, driven largely by the theatrical success of “Scream 7.”
Legacy Television Business Shows Continued Weakness
Traditional broadcasting operations remain under significant pressure. TV Media revenue collapsed 19% to $3.67 billion—substantially worse than the anticipated 9.5% decline. Both advertising income and affiliate fees contributed to the deterioration.
This underscores the persistent structural headwinds facing established media companies. Viewership continues shifting toward streaming platforms, with advertising budgets following suit.
Second Quarter Outlook Falls Short
For the current quarter, Paramount projected revenue between $6.75 billion and $6.95 billion. The midpoint significantly trails the $7.07 billion analyst consensus.
Management attributed the softer outlook to difficult year-over-year comparisons against exceptionally strong theatrical performance in the prior-year period.
Adjusted EBITDA guidance for Q2 ranges from $900 million to $1 billion, exceeding the $861.8 million Wall Street estimate.
Full-year 2026 projections remained unchanged: $30 billion in total revenue and $3.8 billion in adjusted EBITDA.
Paramount also disclosed that Paramount+ subscriber counts will remain relatively flat sequentially in Q2. The company is strategically withdrawing from approximately 2 million international hard bundle subscriptions as part of a portfolio optimization initiative.
The Warner Bros. Discovery merger, carrying an $81 billion valuation, secured shareholder endorsement on April 23. Management confirmed Monday that the transaction remains on schedule to finalize by the conclusion of Q3 2026, pending regulatory clearance.
CEO David Ellison emphasized in his shareholder communication that the merged entity intends to distribute 30 theatrical releases annually following deal completion.
Paramount faces direct competition from Netflix and Disney+ in the streaming arena, and the Warner acquisition would integrate HBO Max into its streaming ecosystem.
The transaction awaits final regulatory approval, with no additional updates regarding that process disclosed in Monday’s announcement.
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