Paramount Skydance reported first-quarter results that exceeded Wall Street expectations, driven by growth in its streaming and film businesses.
The media company posted revenue of nearly $7.35 billion for the quarter, marking a 2% increase from the same period last year.
The performance was supported by gains in its direct-to-consumer streaming division, which includes Paramount+, BET+, and Pluto.
Streaming business drives revenue growth
Revenue from the streaming unit rose 11% year-on-year to $2.4 billion.
Paramount+, the company’s flagship platform, saw particularly strong momentum, with revenue increasing 17% compared to the same period last year.
The platform added 700,000 subscribers during the quarter, bringing its total subscriber base to nearly 80 million.
This growth came despite price increases implemented in January, marking the first hike since August 2024.
The continued expansion highlights the company’s focus on strengthening its streaming operations amid an increasingly competitive market.
Film studio performance strengthens
Paramount’s film studio division also contributed to the quarterly upside.
Revenue in this segment climbed 11% to approximately $1.28 billion compared to the prior year.
The release of “Scream 7” played a key role in boosting performance and emerged as the highest-grossing film in the franchise.
The company also noted that it has nearly doubled its film slate for 2026 compared to 2025 following the merger with Skydance.
Traditional TV business faces pressure
Despite gains in streaming and film, Paramount’s TV media segment continued to face headwinds.
The division, which includes CBS and cable networks such as Nickelodeon, MTV, and BET, reported revenue of $3.67 billion, down 6% year-on-year.
The decline reflects ongoing cord-cutting trends, which continue to weigh on traditional television revenues across the industry.
Earnings beat estimates
Paramount Skydance delivered adjusted earnings per share of 23 cents, exceeding analyst expectations of 15 cents.
Revenue also came in above forecasts of $7.28 billion.
Paramount reported net earnings of $168 million, or 15 cents per share, for the quarter, compared with $152 million, or 22 cents per share, in the same period last year under its previous company structure, according to Wall Street estimates compiled by LSEG.
The results mark the first quarter under the company’s new reporting structure following its merger with Skydance, which includes reorganised expense allocations across its streaming, studios, and TV segments.
Outlook reaffirmed amid ongoing deals
The company reaffirmed its full-year outlook, projecting $30 billion in revenue and $3.8 billion in adjusted EBITDA.
The earnings release comes nine months after the Paramount-Skydance merger and amid efforts to complete another major deal the proposed acquisition of Warner Bros. Discovery.
Paramount Skydance expects the transaction to close by the end of the third quarter, pending regulatory review.
The deal, valued at $31 per share in cash, has already received shareholder approval from Warner Bros. Discovery.
Cost savings and strategic focus
As part of its integration strategy, Paramount Skydance reiterated its plan to achieve $3 billion in cost savings.
The company expects more than $2.5 billion of these reductions to be realised by the end of 2026.
Additionally, the company is working to consolidate the technology stack across its streaming platforms by mid-year.
Improving streaming infrastructure remains a key priority following the merger led by David Ellison.
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