Paramount Skydance reported second-quarter results on Tuesday that exceeded Wall Street revenue projections, prompting the company to increase its full-year earnings guidance. The media conglomerate generated $6.91 billion in total revenue during the quarter ended June 30, with direct-to-consumer streaming revenue climbing 9% to $2.47 billion and film studio revenue rising 16% to $1.31 billion. However, television media revenue declined 9% to $3.13 billion, reflecting ongoing challenges in traditional linear broadcasting.
The company’s streaming division demonstrated particular strength, with Paramount+ achieving record retention rates during the period. The platform benefited from original series including a “Yellowstone” spinoff titled “Dutton Ranch” along with live sports programming such as the UFC and FIFA World Cup coverage in select Latin American markets. Paramount+ added 2 million subscribers during the quarter, reaching a global total of 81.6 million customers. The company attributed improved quarterly margins and profit partly to cost reduction efforts and enhanced creative performance across its traditional television operations.
Paramount raised its full-year 2026 adjusted earnings before interest, taxes, depreciation and amortization guidance to a range of $3.8 billion to $3.9 billion, reflecting savings generated from last year’s merger with Skydance. The company maintained its expectation for total 2026 revenue of $30 billion, representing 4% growth compared to the prior year, while anticipating accelerated direct-to-consumer revenue from both subscription and advertising sources. For the upcoming third quarter, Paramount projects total revenue between $6.95 billion and $7.15 billion, with Paramount+ subscriber growth expected to remain relatively flat quarter over quarter.
CEO David Ellison reiterated management’s confidence that Paramount’s proposed acquisition of Warner Bros. Discovery will ultimately be completed despite pending antitrust litigation. Last month, the company agreed to extend the transaction closing deadline to as late as June 2027 due to a lawsuit filed by state attorneys general. Although Paramount initially targeted a September close and has already received approval from the U.S. Department of Justice and European regulators, the states’ antitrust challenge is scheduled for trial in March 2027. Ellison stated in a shareholder letter that the combination would create a stronger, more competitive media company benefiting consumers, theater operators, and creative professionals.
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