Paramount Skydance Earnings Rise on Streaming Growth
Paramount Skydance earnings beat as streaming growth and cost cuts lifted results, and the $30 billion guide refocused traders on merger leverage.
KEY TAKEAWAYS
- Q1 revenue was $7.35 billion, beating the $7.28 billion Street consensus.
- Streaming revenue reached $2.4 billion while TV-media fell 6% and studios gained 11%.
- Management reaffirmed $30 billion FY revenue and referenced a pending Warner Bros. Discovery merger and 4.3x leverage.
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Paramount Skydance (Nasdaq: PSKY) reported first-quarter 2026 results on May 4, 2026. Earnings were driven by streaming growth and companywide cost cuts that raised pre-tax earnings and led management to reaffirm its full-year revenue target.
Streaming and Studios Drive Beat
Paramount Skydance posted total revenue of $7.35 billion for the quarter ended March 31, 2026, up 2.0% year over year and above the Street consensus of $7.28 billion. Streaming revenue reached $2.4 billion, while studios revenue rose 11.0% to $1.28 billion. TV-media revenue declined 6.0% to $3.67 billion. Earnings per share matched consensus at $0.15. The company said pre-tax earnings increased as cost cuts and gains in streaming and studios offset the decline in TV-media revenue.
Merger and Guidance Outlook
The company referenced a pending merger with Warner Bros. Discovery and reaffirmed its full-year 2026 targets, including $30 billion in revenue and adjusted EBITDA of $3.8 billion. Management said pro forma net leverage at close would be about 4.3 times, with a commitment to reach investment-grade metrics within three years. It plans to reduce net debt by roughly $15 billion to $17 billion by 2029. The transaction targets approximately $6 billion in run-rate synergies, with restructuring precedent in comparable deals ranging from $4.5 billion to $5.5 billion.
