Paramount Skydance reported second-quarter results on Tuesday, posting net earnings of $41 million, or 4 cents per share, down from $57 million, or 8 cents per share, a year earlier. The reported EPS was not directly comparable to Wall Street estimates of 15 cents per share adjusted, according to LSEG. Total revenue came in at $6.91 billion, up slightly year over year and above market expectations of $6.88 billion, according to the company.
Second-quarter total revenue, slightly above the expected $6.88 billion.
Direct-to-consumer revenue — including Paramount+, BET+, and Pluto TV — rose 9% year over year to $2.47 billion. Film studio revenue increased 16% to $1.31 billion, while TV media revenue declined 9% to $3.13 billion. Paramount+ added 2 million subscribers in the quarter, bringing its total to 81.6 million global customers.
Management said the second quarter was its 'best quarter for retention in Paramount+'s history,' attributing the performance to series such as the 'Yellowstone' spinoff 'Dutton Ranch,' UFC, and the FIFA World Cup in parts of Latin America.
Given the results, Paramount Skydance raised its full-year 2026 adjusted EBITDA guidance to between $3.8 billion and $3.9 billion, citing savings from its merger. The company has previously said it plans to save $3 billion from consolidation. It maintained its full-year 2026 revenue outlook of $30 billion, representing growth of about 4% year over year. For the third quarter, it expects total revenue between $6.95 billion and $7.15 billion.
Streaming momentum is expected to continue: the company expects direct-to-consumer revenue from subscriptions and advertising to accelerate in 2026. Third-quarter Paramount+ subscriber additions are expected to be broadly unchanged quarter over quarter, which the company described as 'flattish.'
The earnings report came nearly one year after the completion of Skydance's merger with Paramount, the company said. CEO David Ellison, who leads the company, highlighted 'early benefits' to unifying the technology behind Paramount+ and Pluto TV. The company also increased its film slate from eight films to 15 films, according to the company.
On the proposed acquisition of Warner Bros. Discovery, Ellison said the company remains confident the deal will be completed. Paramount agreed last month to extend the closing date to as late as June 2027; the company had originally targeted the end of September. The deal has received approval from the U.S. Justice Department's antitrust division and regulators in several global jurisdictions, including European regulators. A lawsuit brought by U.S. states over the acquisition is scheduled for trial in March 2027, according to a court filing.
In the second quarter, cost-cutting and 'creative execution' for the traditional TV business helped improve margins and profit, the company said.
