Paramount Skydance raises 2026 outlook as streaming growth offsets linear TV decline

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Paramount Skydance 2026 outlook

Highlights

Paramount Skydance reports Q2 revenue of $6.91 billion, beating analyst estimates, as streaming revenue grows 9% to $2.47 billion while TV media falls 9%.
Paramount+ adds 2 million subscribers to reach 81.6 million globally, marking its best quarter for retention due to strong content offerings and live events.
The company raises its 2026 adjusted EBITDA guidance to $3.8–$3.9 billion citing merger cost savings, but delays closing of the Skydance deal to possibly June 2027 amid legal challenges.

Quarter results and upgraded guidance

As reported by CNBC, Paramount Skydance says second-quarter results reflect continued momentum in streaming, even as its cable TV networks remain a drag on the broader business.

The company reports revenue of $6.91 billion for the period ended June 30, above the $6.88 billion expected by analysts polled by LSEG. Earnings per share are 4 cents, while net earnings attributable to the company total $41 million, down from $57 million, or 8 cents per share, in the comparable period a year earlier. Paramount says cost cutting and what it calls strong creative execution in traditional TV help improve margins and profit during the quarter.

Direct-to-consumer revenue, which includes Paramount+, BET+ and Pluto TV, rises 9% to $2.47 billion. Film studio revenue increases 16% to $1.31 billion, while TV media revenue falls 9% to $3.13 billion. Paramount+ adds 2 million subscribers in the quarter, bringing its global total to 81.6 million, and the company says the period marks the best quarter for retention in the service's history, helped by titles such as "Dutton Ranch," live UFC programming and FIFA World Cup coverage in parts of Latin America.

Paramount Skydance also raises its full-year 2026 guidance for adjusted earnings before interest, taxes, depreciation and amortization to $3.8 billion to $3.9 billion, citing savings from last year's Paramount-Skydance merger. It still expects 2026 revenue of $30 billion, representing 4% year-over-year growth, and says direct-to-consumer revenue from subscriptions and advertising is set to accelerate. For the third quarter, the company expects revenue of $6.95 billion to $7.15 billion and says Paramount+ subscriber additions are likely to be roughly flat from the prior quarter.

Merger plans and media industry implications

Management says it is seeing early benefits from integrating the technology behind Paramount+ and Pluto TV, and it has expanded Paramount's film slate from eight to 15 releases. CEO David Ellison says in a shareholder letter that the company remains confident its planned transaction will be completed and will create a stronger media company for consumers, theater exhibitors and creatives.

That confidence comes despite legal delays surrounding the proposed acquisition. Last month, Paramount agrees to delay the closing of the deal until as late as June 2027 because of a lawsuit brought by a group of state attorneys general, and a court filing on Tuesday says the U.S. states' case goes to trial in March 2027.

The latest results underline the same divide affecting much of the entertainment sector, with streaming and film helping offset continued weakness in linear television. For Paramount Skydance, that makes subscriber retention, advertising growth and merger-related cost savings central to its effort to strengthen earnings while navigating regulatory and legal uncertainty.

In our earlier article on Paramount’s proposed merger with Warner Bros. Discovery, we covered how the deal was thrown into uncertainty as 12 Democratic-led states mounted a legal challenge. We also noted CEO David Ellison’s public effort to frame his political stance as bipartisan while arguing the tie-up is essential for Paramount to better compete with deep-pocketed streaming and tech rivals amid regulators’ concerns about market power in film distribution and cable licensing.

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