Paramount Skydance Reports First-Quarter Profit Rise Driven by Streaming and Studios
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Paramount Skydance reported a rise in first-quarter profit despite a decline in its traditional TV business. Growth in streaming subscriptions and movie studio revenue offset the shortfall. The company is progressing with its plan to acquire Warner Bros. Discovery assets by the end of the third quarter of 2026.
Facts First
- First-quarter profit rose to $168 million from $152 million in the year-earlier period.
- Paramount+ added approximately 700,000 subscribers in the quarter, with overall direct-to-consumer revenue up 11%.
- Revenue from the company's studios rose 11% to $1.3 billion, aided by the performance of 'Scream 7'.
- Revenue from the TV business declined by 6% as advertising and distribution fees fell.
- The company is making progress on its plan to close the acquisition of Warner Bros. Discovery assets by Q3 2026.
What Happened
Paramount Skydance reported that its first-quarter profit rose to $168 million, compared to $152 million in the year-earlier period. After adjusting for one-time items related to the Skydance transaction, adjusted earnings per share were 23 cents. First-quarter revenue rose about 2% to nearly $7.35 billion, despite a 6% decline in revenue from the company's traditional TV business.
Why this Matters to You
If you are a subscriber, the growth of Paramount+ could mean more investment in original content. The company's plan to move its free Pluto service to the Paramount+ technology platform this summer may lead to a more integrated viewing experience. For investors, the company's pivot away from declining traditional TV revenue toward growing streaming and studio segments could be a sign of its long-term strategy taking hold.
What's Next
Paramount stated it is making progress on its plan to close the transaction by the end of Q3 '26, referring to its acquisition of Warner Bros. Discovery (WBD) assets. The company still requires regulatory approval for the deal, which would bring HBO and CNN under its corporate umbrella. The planned integration of Pluto TV onto the Paramount+ platform this summer is a concrete next step for its streaming operations.