Paramount Skydance has reported strong performance in its first quarter, surpassing Wall Street’s revenue and earnings estimates. The media company announced revenue of nearly $7.35 billion for the quarter, reflecting a 2% increase from the same period last year. This growth was significantly driven by the success of its streaming services, which include Paramount+, BET+, and the free ad-supported platform Pluto. Revenue from the streaming division rose by 11% to $2.4 billion year over year.
Paramount+, which serves as the company’s leading streaming service, added 700,000 new subscribers during the quarter, bringing its total subscriber count to nearly 80 million. Revenue from Paramount+ increased by 17% compared to the same quarter last year, even as the company raised subscription prices in January for the first time since August 2024.
The film studio also contributed positively to the overall financial results, with revenue climbing 11% to approximately $1.28 billion. The horror film “Scream 7” was a standout success, achieving the highest box office performance in the franchise’s history. Following a merger with David Ellison’s Skydance last year, Paramount has nearly doubled its film slate for 2026 compared to 2025.
However, not all segments performed equally well. The company’s television media division, which encompasses the broadcast network CBS and several cable channels including Nickelodeon, MTV, and BET, faced challenges from ongoing cord-cutting trends. This segment reported a revenue decrease of 6%, totaling $3.67 billion, compared to last year.
In terms of financial metrics, Paramount Skydance posted first-quarter net earnings of $168 million, or 15 cents per share, compared to $152 million, or 22 cents per share, during the same quarter the previous year. When adjusted for one-time, transaction-related items, the earnings per share were reported at 23 cents, exceeding the expected 15 cents.
This earnings report is the first under Paramount Skydance’s new structural organization, which includes a reshuffling across direct-to-consumer streaming, studios, and TV media expenditure allocations. The company has recalibrated its financial data for previous periods to reflect these changes.
Looking ahead, Paramount reaffirmed its full-year forecast, expecting $30 billion in revenue and $3.8 billion in adjusted EBITDA. This financial snapshot is particularly relevant given the company’s active involvement in a proposed acquisition of Warner Bros. Discovery, which is anticipated to close by the end of the third quarter. The deal has already received approval from WBD’s shareholders and is currently undergoing regulatory review.
As part of this strategic acquisition, Paramount Skydance has agreed to acquire WBD for $31 per share in cash and is securing commitments from external investors to support this transaction. The merger with Skydance is projected to yield savings of $3 billion, with expectations to achieve over $2.5 billion in cost reductions by the end of 2026.
To boost efficiency, Paramount Skydance aims to consolidate its streaming technology and platforms by mid-year, enhancing its service offerings in response to increasing competition in the streaming market.
