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Paramount Skydance delivered a stronger-than-expected first quarter, beating Wall Street estimates on both revenue and earnings as its streaming and film divisions continued to gain momentum. The results highlight the company’s ongoing transformation into a streaming-first media powerhouse following its merger with Skydance.

The company reported quarterly revenue of approximately $7.35 billion, slightly above analyst expectations of $7.28 billion and representing a 2% increase year over year. Adjusted earnings per share came in at 23 cents, significantly ahead of the 15 cents forecast, reflecting improved operational efficiency and stronger performance across key growth segments.

Streaming Business Drives Growth

The standout performer for the quarter was Paramount’s direct-to-consumer streaming division, which includes Paramount+, BET+, and Pluto TV. Revenue from the segment rose 11% year over year to $2.4 billion, underscoring the company’s successful pivot toward digital platforms.

Paramount+ remains the centerpiece of this strategy. The platform added approximately 700,000 new subscribers during the quarter, bringing its total global subscriber base close to 80 million. This growth came despite price increases introduced in January, signaling strong demand and pricing power.

Revenue for Paramount+ alone climbed 17% compared to the previous year, driven by a combination of subscriber growth, higher subscription pricing, and improved advertising monetization.

Film Division Gains Momentum

Paramount’s studio business also contributed to the upbeat results, with revenue rising 11% year over year to around $1.28 billion. The performance was boosted by strong box office results, particularly from Scream 7, which became the highest-grossing installment in the franchise.

The company is doubling down on its film strategy, nearly doubling its planned release slate for 2026 compared to 2025. This expansion is expected to create a stronger pipeline of content that can drive both theatrical revenue and streaming engagement.

Traditional TV Continues to Decline

Despite gains in streaming and film, Paramount’s legacy television business remains under pressure. The TV media segment, which includes CBS as well as cable brands like Nickelodeon, MTV, and BET, reported revenue of $3.67 billion, down 6% year over year.

The decline reflects ongoing cord-cutting trends, as consumers continue to shift away from traditional cable and broadcast television in favor of streaming services.

Profitability and Financial Performance

On a net basis, Paramount reported earnings of $168 million, or 15 cents per share, compared to $152 million in the same period last year. After adjusting for one-time items related to the Skydance merger, earnings per share rose to 23 cents, exceeding expectations.

The company also reaffirmed its full-year outlook, projecting $30 billion in revenue and $3.8 billion in adjusted EBITDA. This guidance signals confidence in continued growth across its streaming and content businesses.

Merger Strategy and Cost Synergies

The results mark one of the first full quarters under Paramount’s new structure following its merger with Skydance, led by David Ellison. The integration is expected to deliver significant cost savings, with the company targeting $3 billion in efficiencies by 2027.

Management confirmed that more than $2.5 billion in cost reductions are expected to be achieved by the end of 2026, driven by streamlined operations, reduced overhead, and consolidation of technology platforms.

A key initiative includes unifying the tech infrastructure across Paramount’s streaming services, which is expected to improve user experience, reduce costs, and enhance data-driven decision-making.

Expansion Through Acquisition

Paramount Skydance is also pursuing further consolidation in the media industry. The company is in the process of acquiring Warner Bros. Discovery in a deal valued at $31 per share in cash.

The transaction, which has already received shareholder approval from Warner Bros. Discovery, is currently undergoing regulatory review and is expected to close by the end of the third quarter. If completed, the acquisition would significantly expand Paramount’s content library, global reach, and competitive position in the streaming wars.

Industry Context and Competitive Position

Paramount’s results come at a time when media companies are racing to scale their streaming platforms while managing the decline of traditional TV. The company’s ability to grow subscribers, increase streaming revenue, and improve profitability places it in a stronger position relative to peers facing similar challenges.

The combination of a growing streaming base, a revitalized film slate, and strategic acquisitions positions Paramount Skydance as a more competitive player in an increasingly consolidated entertainment landscape.

Bottom Line

Paramount Skydance’s latest earnings report highlights a company in transition but gaining traction. Strong streaming growth and solid film performance are helping offset declines in traditional TV, while cost-cutting and strategic deals aim to unlock long-term value. As the company continues to integrate its operations and expand its content ecosystem, it is positioning itself to compete more effectively in the global media and streaming arena.