- Paramount said that it expects $7.15 billion to $7.35 billion in the first quarter of 2026, its midpoint is below analysts' estimate of $7.35 billion.
- The company said that it continues to expect $30 billion in full-year revenue for 2026, in-line with analysts’ estimates.
- PSKY said that its decision to exit about 4-5 million hard bundle subscribers with unattractive economics will result in only modestly higher total paid subscribers compared to 2025.
Paramount Skydance (PSKY) on Wednesday reported fourth-quarter (Q4) results, missing analyst estimates for revenue. Shares of the company were down nearly 2% in extended hours of trading.
Paramount reported revenue of $8.15 billion in Q4, compared to a revenue of $8 billion from the year-ago quarter. The revenue missed analysts’ estimates of $8.17 billion, as per data from Fiscal.ai.
The company said that it continues to expect $30 billion in full-year revenue for 2026, in-line with analysts’ estimates.
More Details
Paramount said that its TV Media revenue fell 5% year-over-year. The decline was driven by advertising weakness of 10% including a seven-percentage point impact from political spending and the Big Ten championship in Q424 and a decline in affiliate revenue of 7% year-over-year due to lower pay TV subscriber volume.
The company said that it is firmly on track to deliver at least $3 billion in efficiencies through 2027, with more than $2.5 billion in run-rate efficiencies expected by the end of 2026.
Quest For WBD
Paramount in a shareholder letter said that it welcomes the Warner Bros. board’s determination and looks forward to continuing to constructively engage its proposal to WBD’s shareholders.
The company said it views WBD as an accelerant to achieving the goal of meeting financial goals and growth trajectory for Paramount.
Outlook
Paramount said that it expects $7.15 billion to $7.35 billion in the first quarter of 2026, its midpoint is below analysts' estimate of $7.35 billion.
The company said it also expects adjusted EBITDA in the range of $900 million to $1 billion.
The company said that it expects Paramount+ to have healthy, accelerating underlying subscriber growth year-over-year. However, its decision to exit about 4-5 million hard bundle subscribers with unattractive economics will result in only modestly higher total paid subscribers compared to 2025.
How Did Stocktwits Users React?
Retail sentiment around PSKY trended in ‘extremely bullish’ territory amid ‘high’ message volume.
Shares in the company have fallen 13% over the past year.