Paramount Skydance Reports 2% Revenue Growth to $7.35 Billion in Q1 2026

Paramount Skydance Corporation reported a revenue increase of 2% for the first quarter of 2026, totaling $7.35 billion, compared to $7.19 billion in the same period last year. The growth was primarily driven by higher licensing revenues and an increase in subscribers for Paramount+, which reached 79.6 million, up from 77.8 million a year earlier. Operating income rose 12% to $616 million, while net earnings attributable to the parent increased by 11% to $168 million, or $0.15 per diluted share. However, diluted earnings per share decreased by 32% compared to the previous year, reflecting the impact of additional shares issued during the Skydance Transactions.

The company experienced significant operational changes, including the integration of Skydance into its financial results following the completion of the Skydance Transactions in August 2025. This integration contributed to the increase in revenues, particularly in the Studios segment, which reported $1.28 billion in revenue. The Direct-to-Consumer segment also performed well, generating $2.40 billion, while the TV Media segment reported $3.67 billion in revenue, albeit with a decline in advertising revenues due to challenges in the linear advertising market.

Paramount Skydance's total operating expenses decreased by 2% to $4.86 billion, driven by cost-saving initiatives and lower content costs. Selling, general, and administrative expenses also fell by 9% to $1.41 billion, reflecting reduced marketing and compensation costs. The company recorded $103 million in transaction-related costs associated with the planned merger with Warner Bros. Discovery, which is expected to close by the end of the third quarter of 2026.

The balance sheet showed total assets of $44.49 billion as of March 31, 2026, an increase from $43.34 billion at the end of 2025. Cash and cash equivalents decreased to $1.94 billion from $3.27 billion, largely due to the $2.8 billion termination fee paid to Netflix in connection with the WBD merger. Total debt rose to $15.48 billion, up from $13.66 billion, reflecting new borrowings under the credit facility. The company has secured commitments for $54 billion in debt financing to support the WBD merger, which includes a $49 billion senior secured bridge loan facility.

Looking ahead, Paramount Skydance anticipates continued growth driven by its streaming services and the successful integration of Skydance. However, the company also faces challenges, including potential regulatory hurdles related to the WBD merger and the ongoing volatility in the advertising market. The management remains focused on executing its strategic initiatives while navigating these market conditions.