Key Highlights

  • Paramount Skydance delivered Q1 adjusted EPS of $0.23, surpassing Wall Street’s $0.15 projection; total revenue increased 2% to reach $7.35 billion
  • Paramount+ subscriber base expanded 2% to 79.6 million, falling modestly short of the 79.9 million analyst forecast
  • TV Media segment sales plunged 19% to $3.67 billion, significantly worse than the anticipated 9.5% decrease
  • Q2 revenue outlook of $6.75–$6.95 billion came in below the $7.07 billion analyst consensus
  • The $81 billion Warner Bros. Discovery merger continues progressing toward an anticipated close by the end of Q3 2026

Paramount Skydance (PSKY) shares climbed as high as 4% during Monday’s after-hours session following the company’s better-than-expected first-quarter earnings. By Tuesday’s premarket hours, shares traded up 1.5% at $11.30, though the stock has declined 17% year-to-date.


PSKY Stock Card
Paramount Skydance Corporation Class B Common Stock, PSKY

The company reported adjusted earnings per share of $0.23, comfortably exceeding the $0.15 Wall Street consensus. Total revenue climbed 2% to $7.35 billion, topping analyst projections of $7.28 billion.

This marked the company’s inaugural earnings announcement following its successful February bid to acquire Warner Bros. Discovery.

The streaming division delivered standout performance. Paramount’s direct-to-consumer segment generated revenue growth of 11%, reaching $2.4 billion. Paramount+ alone saw revenue surge 17% to $1.97 billion.

Subscriber figures landed marginally below projections. Paramount+ concluded the quarter with 79.6 million subscribers, representing 2% annual growth, compared to analyst expectations of 79.9 million. Management attributed subscriber gains to popular programming including “Landman,” “The Madison,” and “Marshals.”

The studios division delivered solid results as well, posting an 11% revenue increase to $1.28 billion, driven by strong box office performance from “Scream 7.”

Traditional Television Business Faces Headwinds

The legacy TV operations remained under pressure. TV Media revenue tumbled 19% to $3.67 billion—substantially worse than analyst expectations for a 9.5% decline. Both advertising sales and affiliate fees contributed to the downturn.

This reflects the persistent structural challenge confronting traditional media companies. Viewer migration toward streaming platforms accelerates while advertising budgets shift accordingly.

Second Quarter Outlook Falls Short

Management provided Q2 revenue guidance ranging from $6.75 billion to $6.95 billion. The midpoint of this forecast trails the $7.07 billion analyst consensus.

Executives attributed the softer outlook to difficult year-over-year comparisons against robust theatrical revenue from the prior-year period.

Adjusted EBITDA for the second quarter is projected between $900 million and $1 billion, surpassing analyst expectations of $861.8 million.

Management maintained its full-year 2026 guidance: $30 billion in total revenue and $3.8 billion in adjusted EBITDA.

Paramount also indicated that Paramount+ subscriber growth will remain relatively flat on a sequential basis in Q2. The company plans to exit approximately 2 million international hard bundle subscriptions as part of a strategic repositioning effort.

The Warner Bros. Discovery acquisition, carrying an $81 billion valuation, secured shareholder approval on April 23. Management reiterated Monday its expectation to finalize the transaction by the conclusion of Q3 2026, pending regulatory clearance.

CEO David Ellison confirmed in his letter to shareholders that the merged entity intends to release 30 theatrical films each year following deal completion.

Paramount faces direct competition from Netflix and Disney+ in the streaming arena, while the Warner acquisition would bring HBO Max into its content portfolio.

Regulatory authorities continue reviewing the proposed merger, though Monday’s announcement provided no additional updates on the approval timeline.