Paramount Skydance Corporation (PSKY)
NASDAQ:PSKY
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Paramount Skydance
(NASDAQ:PSKY)
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Rating:53Neutral
Price Target:
$10.00
▼(-14.82% Downside)
Action:Reiterated
Date:05/20/26
The score is held back primarily by weak financial performance (still-lossmaking operations, rising leverage, and deteriorating free-cash-flow growth) and bearish technical signals (below long-term moving averages with negative MACD). These are partially offset by relatively supportive valuation (moderate P/E and dividend) and an earnings call that emphasized improving streaming/studio momentum and clear operational milestones, though with notable margin and deal-execution risks.
Positive Factors
Streaming revenue & subscribers
Sustained DTC revenue growth with ARPU uplift and meaningful underlying subscriber adds indicates improving monetization and product-market fit. A larger, higher-value subscriber base strengthens recurring revenue, ad yield and long-term content ROI, supporting durable cash conversion and competitive positioning.
Negative Factors
Rising leverage
Leverage has increased materially, reflecting large transaction and bridge financing. Higher debt-to-equity reduces financial flexibility, raises interest and covenant risk, and magnifies exposure to cash‑flow volatility, constraining capital allocation until multi‑year deleveraging targets are achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Streaming revenue & subscribers
Sustained DTC revenue growth with ARPU uplift and meaningful underlying subscriber adds indicates improving monetization and product-market fit. A larger, higher-value subscriber base strengthens recurring revenue, ad yield and long-term content ROI, supporting durable cash conversion and competitive positioning.
Read all positive factors
Paramount Skydance (PSKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.71B
Dividend Yield1.48%
Average Volume (3M)9.57M
Price to Earnings (P/E)10.8
Beta (1Y)0.74
Revenue Growth1.14%
EPS Growth93.73%
CountryUS
Employees18,600
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.57
Shares Outstanding1,087,673,000
10 Day Avg. Volume9,882,335
30 Day Avg. Volume9,565,769
Financial Highlights & Ratios
PEG Ratio6.71
Price to Book (P/B)0.76
Price to Sales (P/S)0.30
P/FCF Ratio27.55
Enterprise Value/Market Cap2.17
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit2.48
Enterprise Value/Ebitda-5.46
Forecast
1Y Price Target
$11.38Price Target Upside-3.11% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering10
EPS Forecast (FY)0.6
Revenue Forecast (FY)$29.84B
Paramount Skydance Business Overview & Revenue Model
Company Description
Paramount Skydance Corporation operates as a media, streaming, and entertainment company worldwide. It operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates CBS Television Network, a domest...
How the Company Makes Money
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Paramount Skydance Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed considerable positive operational and financial momentum: double-digit streaming and studio revenue growth, meaningful subscriber gains (underlying adds ~2M), successful content and sports franchises (Scream 7, Landman, UFC), product and ad-tech progress, and notable financing/transaction milestones. Headwinds include a Q1 advertising decline (-3%), expected DTC margin pressure in H2 as the slate ramps, the removal of low-ARPU hard-bundles impacting headline adds, and one-time transaction-related accounting benefits that will step down. On balance, highlights substantially outweigh the lowlights, with the company pointing to execution on convergence, monetization improvements, and a clear plan for scaling content and tech.Positive Updates
Strong Paramount Plus Revenue Growth
Paramount Plus revenue grew 17% year-over-year in Q1, driven by a 14% ARPU increase following a January price rise and healthy subscriber mix improvements.
Negative Updates
Advertising Revenue Pressure
Total company advertising declined 3% in Q1, with TV Media-facing declines expected to persist near-term; company expects ad revenue to return to growth only in the back half as DTC accelerates.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Paramount Plus Revenue Growth
Paramount Plus revenue grew 17% year-over-year in Q1, driven by a 14% ARPU increase following a January price rise and healthy subscriber mix improvements.
Read all positive updates
Company Guidance
Management provided near‑term operational and deal guidance including consolidation of three streaming services into one unified platform by mid‑year and target close of the Warner Bros. Discovery transaction by September (U.S. HSR cleared; several international approvals secured; WBD shareholders approved April 23), with $10 billion of permanent financing secured and the remaining $49 billion bridge syndicated; they also reiterated a 30‑film annual theatrical commitment (Paramount 15 films this year vs. 8 last year; WBD 15), a combined DTC scale of >200 million subscribers in 100+ countries and linear reach in 200+ countries. Financial and operating markers called out: Paramount Plus revenue +17% in Q1 (ARPU +14% from the January price increase), nearly 2 million underlying subscriber adds (headline net adds ~700k, offset by exiting just over 1M hard‑bundle subs with ARPU <$1), studio revenue +11% in Q1, Q1 beat on revenue and adjusted EBITDA, Q1 ads −3% but DTC ad revenue returned to growth and total company ad revenue is expected to return to growth in H2; they warned of DTC margin pressure in H2 as the slate ramps in Q3–Q4. Tech and efficiency targets include ~80% of engineers using code‑assisted tools (approval times cut by >50%), Pluto VOD +60% per user, >10M households and 100M+ hours of UFC viewing to date, and completion of the standalone Oracle Fusion ERP migration by early 2027.Paramount Skydance Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.37B | 29.21B | 29.21B | 29.65B | 30.15B | 28.59B |
| Gross Profit | 10.21B | 9.78B | 8.27B | 7.26B | 9.90B | 10.45B |
| EBITDA | -4.65B | -4.92B | -4.92B | 85.00M | 2.60B | 19.93B |
| Net Income | -605.00M | -6.19B | -6.19B | -1.04B | 1.10B | 4.54B |
Balance Sheet | ||||||
| Total Assets | 44.49B | 43.34B | 46.17B | 53.54B | 58.39B | 58.62B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 3.27B | 2.66B | 2.46B | 2.88B | 6.27B |
| Total Debt | 15.93B | 14.38B | 15.83B | 16.12B | 17.57B | 19.63B |
| Total Liabilities | 31.74B | 30.45B | 29.39B | 30.49B | 34.79B | 35.65B |
| Stockholders Equity | 11.71B | 11.69B | 16.32B | 22.53B | 23.04B | 22.40B |
Cash Flow | ||||||
| Free Cash Flow | 296.00M | 323.00M | 489.00M | 147.00M | -139.00M | 599.00M |
| Operating Cash Flow | 490.00M | 485.00M | 752.00M | 475.00M | 219.00M | 953.00M |
| Investing Cash Flow | -2.99B | -160.00M | -115.00M | 849.00M | -744.00M | 2.16B |
| Financing Cash Flow | 635.00M | -911.00M | -380.00M | -1.75B | -2.76B | 83.00M |
Paramount Skydance Technical Analysis
Positive
11.74
Price Trends
10.30
Positive
10.87
Negative
13.23
Negative
Market Momentum
-0.15
Positive
49.39
Neutral
42.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSKY, the sentiment is Positive. The current price of 11.74 is above the 20-day moving average (MA) of 10.50, above the 50-day MA of 10.30, and below the 200-day MA of 13.23, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 42.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSKY.
Paramount Skydance Risk Analysis
Paramount Skydance disclosed 42 risk factors in its most recent earnings report. Paramount Skydance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Paramount Skydance Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $373.08B | 19.21 | 49.24% | ― | 18.57% | 45.93% | |
75 Outperform | $178.86B | 18.16 | 10.29% | 1.10% | 4.02% | 27.66% | |
75 Outperform | $18.11B | 18.11 | 67.11% | 2.47% | 12.55% | -0.50% | |
73 Outperform | $25.70B | 37.29 | 14.86% | 0.75% | 0.60% | -5.58% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $67.77B | -5.87 | -6.13% | ― | -2.78% | 84.26% | |
53 Neutral | $11.71B | 10.77 | -4.64% | 1.48% | 1.14% | 93.73% |
* Communication Services Sector Average
PSKY
Paramount Skydance
10.46
-1.32
-11.21%
DIS
Walt Disney
103.00
-8.13
-7.32%
NFLX
Netflix
88.60
-29.94
-25.26%
FOXA
Fox
63.98
9.46
17.35%
WMG
Warner Music Group
34.72
9.16
35.85%
WBD
Warner Bros
27.03
17.48
183.04%
Paramount Skydance Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Paramount Skydance Launches Major Notes Exchange for Merger
Positive
May 19, 2026
On May 19, 2026, Paramount Skydance launched cash tender and exchange offers for up to $2.4 billion and $12.8 billion, respectively, of notes issued by Discovery Global Holdings and Discovery Communications, offering new Paramount notes to eligibl...
Business Operations and StrategyFinancial Disclosures
Paramount Skydance Recasts Segments After Skydance Merger
Neutral
May 13, 2026
Paramount Skydance Corporation has retrospectively recast its segment reporting for the Successor period from August 7, 2025 to December 31, 2025, aligning historical disclosures with a new structure built around Studios, Direct-to-Consumer and TV...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and Financing
Paramount Skydance Announces Leadership Change Amid Major Financing
Positive
Apr 9, 2026
On April 7, 2026, PSKY entered into a new senior secured Pro Rata Credit Agreement providing $2.5 billion in three-year term A-1 loans, $2.5 billion in five-year term A-2 loans, and a $5.0 billion five-year revolving facility to support its pendin...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Paramount Skydance Recasts Financial Reporting Segments and Metrics
Neutral
Apr 8, 2026
In 2026, Paramount Skydance reorganized its financial reporting into three operating segments: Studios, Direct-to-Consumer, and TV Media, while also shifting certain centralized costs from segments into corporate expenses. The company simultaneous...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Paramount Skydance Boosts Class B Shares, Warrants Issued
Positive
Apr 7, 2026
On April 7, 2026, Paramount Skydance amended its charter in Delaware to increase authorized Class B shares to 7 billion and allow Class B‑only dividends with Class A consent, bolstering flexibility to issue equity. The move underpins financi...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Paramount Skydance Announces Transformative Warner Bros. Discovery Merger
Positive
Mar 2, 2026
On February 27, 2026, Paramount Skydance and Warner Bros. Discovery agreed a definitive merger under which Paramount will acquire 100% of WBD for $31 per share in cash, valuing WBD at about $81 billion in equity and $110 billion in enterprise valu...
M&A TransactionsRegulatory Filings and Compliance
Paramount Skydance Clears U.S. Hurdle in WBD Deal
Positive
Feb 20, 2026
On February 19, 2026, Paramount Skydance Corporation cleared a key U.S. regulatory hurdle for its proposed all-cash acquisition of Warner Bros. Discovery, Inc., as the 10-day Hart-Scott-Rodino waiting period expired without objection, removing any...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.