Paramount Skydance (PSKY) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with revenue rising 2% year-over-year to $7.35 billion, driven by Paramount+ growth, higher licensing revenues, and significant progress in business transformation, including nearly doubling the film slate and green-lighting new series.

• Transitioned to a new reporting structure with three segments: Studios, Direct-to-Consumer, and TV Media, following the Skydance Transactions completed in August 2025.

• Unified platforms and workflows, leveraging advanced technology and AI to drive efficiency and enhance consumer and partner experiences.

• Major content successes include Scream VII (highest-grossing in franchise), Landman (most-watched Paramount+ series), and CBS leading primetime ratings.

• Confident in strategy and trajectory, with the WBD transaction progressing and expected to accelerate transformation.

Financial highlights

• Q1 2026 GAAP revenue was $7,347 million, with adjusted EBITDA of $1,161 million and adjusted net earnings attributable to Parent of $261 million.

• Adjusted EBITDA surged 59% year-over-year, benefiting from cost reductions and the inclusion of Skydance.

• Paramount+ revenue up 17% year-over-year, driven by a 14% increase in ARPU and underlying subscriber growth.

• Free cash flow for Q1 2026 was $101 million.

• Adjusted diluted EPS for Q1 2026 was $0.23.

Outlook and guidance

• Expect continued healthy subscriber growth and improved ad monetization throughout the year, with revenue growth weighted to the second half as content slate fills in.

• D2C EBITDA margins expected to be impacted in Q3 and Q4 due to timing of content launches.

• The WBD Merger is expected to close by Q3 2026, subject to regulatory approvals.

• Management anticipates continued cost savings and integration benefits from recent transactions.

• Risks include macroeconomic uncertainty, advertising market volatility, and integration challenges.