Paramount Skydance Q1 EPS $0.23 and $7.35B Revenue Beat Estimates
Paramount Skydance reported Q1 revenue of $7.35B and adjusted EPS of $0.23, topped estimates while adding 700K Paramount+ subscribers and boosting DTC revenue by 11% to $2.4B. It reiterated 2026 guidance for $30B in revenue, $3.8B adjusted EBITDA and expects WBD deal close in September.
1. Q1 Financial Results
Paramount Skydance delivered Q1 revenue of $7.35 billion, a 2% year-over-year increase, and reported adjusted EPS of $0.23, surpassing the consensus estimate of $0.15. Despite the earnings beat, shares fell nearly 5% as investors focused on other metrics.
2. Segment and Subscriber Performance
The company added approximately 700,000 Paramount+ subscribers in the quarter, driving direct-to-consumer revenue up 11% to $2.4 billion. Studio revenue rose 11% to $1.3 billion, supported by box office hits like “Scream 7” and efficiency from financial restructuring efforts.
3. Guidance and Transaction Outlook
Management reaffirmed full-year 2026 targets of $30 billion in revenue and $3.8 billion in adjusted EBITDA. Executives expect the Warner Bros. Discovery merger to close by September, positioning the combined entity for streaming growth and potential cost synergies despite elevated leverage.