TLDR

  • Paramount Skydance (PSKY) reported a Q4 adjusted loss of $0.12 per share, missing the expected $0.01 loss.
  • Revenue reached $8.15 billion, a 2.1% year-over-year increase and was largely in line with estimates.
  • First-quarter 2026 revenue guidance of $7.15–$7.35 billion fell short of the $7.36 billion consensus.
  • Paramount+ concluded the year with 78.9 million paid subscribers; UFC content is anticipated to boost growth.
  • Paramount increased its bid for Warner Bros. Discovery to $31 per share, surpassing Netflix’s $27.75 offer.

Paramount Skydance announced mixed fourth-quarter results on February 26, with an adjusted loss per share of $0.12, significantly below the consensus estimate of a $0.01 loss.

Quarterly revenue totaled $8.15 billion, marking a 2.1% year-over-year increase and aligning closely with analyst expectations of $8.14 billion.

The filmed entertainment division showed strength, with revenue growing by 16%. This growth was primarily attributed to the inclusion of Skydance licensing rather than organic box office performance.

PSKY Stock Card

Conversely, the TV Media unit experienced a revenue decline of 5%, reaching $4.71 billion, impacted by reduced advertising demand and a decrease in affiliate revenue.

The ongoing trend of cord-cutting continues to affect traditional television. Paramount anticipates a decline in TV Media revenue this year, stating it will be “mostly in line with industry pay TV headwinds.”

Guidance Comes in Light

For the first quarter of 2026, Paramount projected revenue between $7.15 billion and $7.35 billion, which is below the Wall Street consensus of $7.36 billion. In the same quarter last year, revenue was $7.19 billion.

For the full year 2026, the company forecasts revenue of $30 billion, representing an approximate 4% increase from 2025.

However, there is a caveat: Paramount warned that Paramount+ could see a reduction of 4 to 5 million subscribers due to the discontinuation of a “hard bundle” arrangement.

Paramount+ and the Streaming Picture

Paramount+ concluded 2025 with 78.9 million paid subscribers. The company is relying on the addition of UFC to its exclusive content offerings to drive subscriber growth in 2026.

Streaming momentum is clearly the part of the business Paramount wants investors watching. PP Foresight analyst Paolo Pescatore put it plainly: “It’s about whether streaming momentum can outrun the structural unwind in linear.”

The Warner Bros. Discovery Bid

A more significant development may be occurring outside of the earnings report. On Tuesday, Paramount raised its offer for Warner Bros. Discovery to $31 per share, an increase from its previous $30 offer.

This move directly challenges Netflix’s competing bid of $27.75 per share for WBD’s streaming and studio assets.

WBD’s board is currently evaluating whether Paramount’s revised all-company offer constitutes a superior proposal. The acquisition would include a film and TV library featuring popular franchises such as Harry Potter and Game of Thrones.

CEO David Ellison described the WBD bid as an “accelerant” for Paramount’s objectives in an investor letter, but declined to provide further details on the deal discussions.

He also sought to reassure investors, stating that Paramount Skydance remains “confident in our standalone strategy and growth trajectory.”

PSKY currently holds a Strong Sell consensus rating on TipRanks, based on zero Buy ratings, one Hold, and four Sells. The average price target of $12.25 suggests approximately 20.6% upside from current levels.

Over the past year, PSKY stock has experienced a 9.5% decline.