PSKY Beats Q2 Estimates, Raises 2026 Outlook As CEO Stands Firm On $110B WBD Deal — But Stock Slips After-Hours

• PSKY reported Q2 EPS of $0.04 and revenue of $6.91 billion, beating Wall Street expectations on both earnings and sales.
• PSKY lifted its full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) outlook and reaffirmed its expectation for revenue growth in 2026.
• CEO David Ellison said he’s “confident” the Warner Bros. Discovery acquisition will close despite antitrust litigation.

Paramount Skydance Corp. (PSKY) reported its financial results for the second quarter ended June 30 on Tuesday, beating analyst expectations on both earnings and revenue while raising its full-year guidance. CEO David Ellison also reiterated confidence that the proposed Warner Bros. Discovery merger will close despite legal challenges.

PSKY shares closed 1.95% higher in Tuesday's regular session ahead of the earnings release but edged 0.12% lower in after-hours trading at the time of writing.

PSKY Q2 Earnings Beat Expectations

Paramount Skydance reported second-quarter earnings per share of $0.04, compared with $0.08 in the year-ago period. According to Fiscal AI, analysts had expected the company to post a loss of $0.23 per share.

Quarterly revenue came in at $6.91 billion, up from $6.8 billion in the same period last year and ahead of the $6.8 billion consensus estimate, according to Fiscal AI.

The company's direct-to-consumer streaming segment, which includes Paramount+, BET+, and the free ad-supported Pluto TV, generated revenue of $2.47 billion, compared with $2.26 billion a year earlier. Film studios' revenue increased to $1.31 billion from $1.13 billion in the prior-year quarter, while TV media revenue declined to $3.13 billion from $3.45 billion.

Paramount+ recorded its best retention quarter ever, driven by Dutton Ranch, UFC, and the FIFA World Cup, which was available non-exclusively across six countries in Latin America. The streaming platform added around two million subscribers during the quarter.

CEO Reaffirms Confidence In WBD Deal

Paramount Skydance’s proposed $110-billion acquisition of Warner Bros. Discovery Inc. (WBD) remains tied up in antitrust litigation. A California federal judge on Tuesday scheduled a 12-day trial beginning March 2, 2027, to hear lawsuits from a group of states and the Writers Guild of America seeking to block the deal, Bloomberg reported.

Despite that, CEO David Ellison reaffirmed the company’s confidence that the transaction will close. “As we’ve executed against our strategy over the past year, we’ve also prepared to close the transaction, and we remain confident it will be completed, creating a stronger, more competitive, creative-first media company that builds on the foundation we’ve established — one that benefits consumers, theater exhibitors and creatives,” Ellison said in a shareholder letter.

PSKY Raises Full-Year Guidance

Paramount Skydance raised its full-year 2026 guidance for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to a range of $3.8 billion to $3.9 billion from its previous guidance of $3.8 billion. The company expects total 2026 revenue of $30 billion, representing 4% year-over-year growth.

For the third quarter, Paramount expects total revenue to range between $6.95 billion and $7.15 billion and said Paramount+ subscriber additions are expected to be “flattish” quarter over quarter.

The company also expects third-quarter adjusted EBITDA of $875 million to $975 million, implying a 13.1% margin at the midpoint.

PSKY Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment around PSKY stock remained ‘bearish,’ unchanged over the past 24 hours, while message volume was ‘low.’

PSKY stock has fallen nearly 38% year to date.

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