Paramount Skydance reported first-quarter results that handily beat Wall Street estimates, but a disappointing revenue outlook for the current quarter tempered investor enthusiasm. Adjusted earnings per share came in at $0.23, comfortably above the $0.15 analyst consensus compiled by LSEG. Revenue rose 2% to $7.35 billion, also surpassing the $7.28 billion forecast.
Streaming strength was a key driver. Direct-to-consumer revenue climbed 11% to $2.4 billion, with Paramount+ alone growing 17% to $1.97 billion. The platform added 700,000 net subscribers, ending the quarter at 79.6 million — just shy of the 79.9 million expected. Hits like 'Landman', 'The Madison' and 'Marshals' helped attract viewers, even after a price hike in January, the first since August 2024. The film studio also delivered, with revenue up 11% to $1.28 billion, boosted by 'Scream 7'.
Legacy TV drag remained severe. TV Media revenue tumbled 19% to $3.67 billion, far worse than the 9.5% decline analysts had penciled in. Both advertising and affiliate fees suffered as cord-cutting accelerated.
For the second quarter, management guided for revenue of $6.75–$6.95 billion, below the $7.07 billion consensus. Paramount+ subscriber growth is expected to be roughly flat sequentially as the company exits around 2 million international hard bundle subscriptions. Full‑year guidance was reaffirmed: $30 billion in revenue and $3.8 billion in adjusted EBITDA.
The earnings release is the first under the merged Paramount‑Skydance structure and arrives as the company pushes forward with its $81 billion acquisition of Warner Bros. Discovery, which has shareholder approval and is expected to close by the end of Q3 2026, pending regulatory review. The stock initially jumped 4% in after-hours trading but gave back some gains, trading up about 1.5% premarket.
