Paramount Skydance raises 2026 profit outlook on streaming growth, merger savings

Paramount Skydance raised its full-year profit guidance on Tuesday as streaming growth and merger-related savings helped offset weakness in its traditional television business.

The US media company increased its 2026 adjusted EBITDA forecast to between $3.8 billion and $3.9 billion, while maintaining its revenue outlook at $30 billion, representing annual growth of about 4%.

Second-quarter revenue totaled $6.91 billion, slightly above market expectations of $6.88 billion and marginally higher than a year earlier.

Net earnings fell to $41 million, or 4 cents per share, from $57 million, or 8 cents per share, in the same period last year.

Direct-to-consumer revenue, including Paramount+, BET+ and Pluto TV, rose 9% year-on-year to $2.47 billion.

Paramount+ added 2 million subscribers, bringing its global customer base to 81.6 million, while film studio revenue increased 16% to $1.31 billion.

TV media revenue, however, declined 9% to $3.13 billion amid continued pressure on cable networks and the traditional pay-TV market.

For the third quarter, Paramount expects revenue of between $6.95 billion and $7.15 billion, with Paramount+ subscriber additions projected to remain broadly unchanged.

Paramount Skydance CEO David Ellison said the company remains confident that its proposed acquisition of Warner Bros. Discovery will be completed despite an antitrust lawsuit filed by a group of US states.

Paramount recently agreed to extend the closing deadline until as late as June 2027, while the lawsuit is scheduled to go to trial in March 2027.

The deal has received clearance from the Justice Department’s antitrust division and regulators in several other jurisdictions, including Europe.