Paramount Skydance Misses Q4 Earnings with Weak Guidance, Braces for TV Slump

FomoAnxiety · 2026-02-26T05:01:11+00:00

Paramount Skydance reported a mixed fiscal fourth quarter, with a larger-than-expected loss per share despite a revenue increase. The company faces challenges in TV media, forecasting weak guidance for the coming year, while its bid for Warner Bros. Discovery is under scrutiny.

FomoAnxiety

2026-02-26 05:01:11

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Paramount Skydance PSKY -2.21% ▼ reported mixed results for the fiscal fourth quarter and issued weak revenue guidance amid ongoing legacy TV challenges. Adjusted loss per share was $0.12, worse than the consensus expected loss of $0.01 per share. Revenue rose 2.1% year-over-year to $8.15 billion, in line with the consensus.

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The filmed entertainment segment saw a 16% revenue increase, driven mainly by the consolidation of Skydance licensing. Meanwhile, Paramount’s TV Media revenue fell 5% to $4.71 billion due to weaker advertising demand and lower affiliate revenue.

Paramount+ ended the year with 78.9 million paid subscribers. The David Ellison-led company expects growth this year from adding UFC to its exclusive lineup.

Paramount Issues Weak Guidance

For Q1FY26, Paramount guided revenue between $7.15 billion and $7.35 billion, below the $7.36 billion consensus. In the prior year quarter, revenue was $7.19 billion. The company expects TV Media revenue to drop this year, “mostly in line with industry pay TV headwinds.”

For full year 2026, the company projects $30 billion in revenue, up 4% from last year. However, it warned that Paramount+ will be hit by exiting a “hard bundle” with 4-5 million subscribers.

Legacy media companies are seeing falling ratings and revenue in cable TV, due to accelerated cord-cutting and the shift to streaming.

Paramount’s WBD Deal in Spotlight

On Tuesday, Paramount raised its offer for Warner Bros. Discovery WBD -0.86% ▼ to $31 per share from $30 per share, aiming to prevail over Netflix NFLX +5.97% ▲ in the bidding war. In an investor letter, Ellison called the bid an “accelerant” for its goals but declined further comment on the deal talks. He emphasized that Paramount Skydance remains “confident in our standalone strategy and growth trajectory for Paramount.”

WBD’s board is deciding if Paramount’s revised bid for the whole company beats Netflix’s $27.75-per-share offer for its streaming and studio assets.

Is PSKY Stock a Buy?

On TipRanks, PSKY has a Strong Sell consensus rating based on zero Buys, one Hold, and four Sell ratings. The average Paramount Skydance price target of $12.25 implies 20.6% upside potential from current levels. Over the past year, PSKY shares have lost 9.5%.

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