Skydance (SKYD) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $7.025B, up 5% on a supplemental pro forma basis; Adjusted EBITDA was $1.000B and adjusted net earnings were $506M.

• The WBD merger closed October 6, 2026; its results are excluded from the quarter ended September 30.

• Integration targets at least $6B of run-rate synergies within three years; the strategy emphasizes premium content and IP, unified technology, D2C growth, and profitable linear operations.

Financial highlights

• Q3 revenue was $7.025B; operating income was $368M; net earnings attributable to Parent were $73M; diluted EPS was $0.06.

• Q3 Adjusted EBITDA was $1.000B; adjusted net earnings were $506M and adjusted diluted EPS was $0.45, including a $514M gain on interest-rate contracts.

• 9M revenue was $21.285B; operating income was $1.459B; net earnings attributable to Parent were $282M; diluted EPS was $0.25.

• 9M Adjusted EBITDA was $3.260B; adjusted net earnings were $972M and adjusted diluted EPS was $0.87.

• Standalone Paramount remained on track for the high end of FY2026 adjusted EBITDA guidance at $3.9B; Q3 adjusted EBITDA exceeded the top end of guidance.

Outlook and guidance

• Medium-term targets: mid-single-digit revenue growth, adjusted EBITDA margins in the mid-20% range, at least $10B of free cash flow in 2030, and net leverage below 3x by end-2029.

• Combined underlying free cash flow is expected to be $4B, excluding one-time transformation costs; FCF conversion is expected at 30%, excluding transformation and transaction costs.

• 2027 preliminary outlook calls for continued strong D2C and studio revenue growth, higher total Adjusted EBITDA YoY, and free cash flow at break-even or better, including synergy costs.

• Q4 D2C revenue is expected to grow strongly; Warner Bros. film-slate underperformance is expected to create a $200M Adjusted EBITDA headwind and slow combined studio growth.

• Annual guidance replaces quarterly guidance; full 2027 guidance is planned for the next earnings call, with quarterly trend commentary as appropriate.