Paramount Skydance announced an increase in its full-year 2026 adjusted EBITDA guidance as it reported second-quarter earnings, highlighting ongoing strengths in its streaming business and continued challenges in linear TV. The company raised its full-year adjusted EBITDA outlook to a range of $3.8 billion to $3.9 billion, attributing the improvement to cost savings from its merger with Skydance, which is expected to yield $3 billion in consolidation savings [1].
For the quarter ended June 30, Paramount Skydance reported net earnings attributable to the company of $41 million, or 4 cents per share, compared to $57 million, or 8 cents per share, in the same period last year. Total revenue reached $6.91 billion, slightly above Wall Street expectations of $6.88 billion, with direct-to-consumer streaming revenue rising 9% to $2.47 billion and film studios revenue increasing 16% to $1.31 billion. However, TV media revenue declined 9% to $3.13 billion [1]. Paramount+ added 2 million subscribers during the quarter, bringing its global total to 81.6 million, and the company reported its best quarter for retention in Paramount+'s history, driven by content such as the 'Yellowstone' spinoff 'Dutton Ranch,' UFC, and FIFA World Cup coverage in Latin America [1].
Despite the positive streaming performance, the company continues to face headwinds in its traditional TV business, though cost cutting and creative execution have helped improve margins and profit. Paramount Skydance reaffirmed its expectation for total 2026 revenue of $30 billion, representing 4% year-over-year growth, with direct-to-consumer revenue from streaming subscriptions and advertising expected to accelerate [1].
The company also addressed the ongoing antitrust delay affecting its proposed merger with Warner Bros. Discovery, stating it remains confident and continues to prepare for the deal [1]. For the third quarter, Paramount expects total revenue between $6.95 billion and $7.15 billion [1].
CONCLUSION
Paramount Skydance's raised profit outlook and strong streaming growth signal resilience amid industry challenges, though linear TV remains a drag on results. The company is optimistic about its merger with Warner Bros. Discovery despite regulatory delays, and expects continued revenue growth driven by its direct-to-consumer segment.