Want to see PSKY full AI Analyst Report?
Top Page
Paramount Skydance
(NASDAQ:PSKY)
Select Model
Select Model
Rating:50Neutral
Price Target:
$8.50
▲(3.53% Upside)
Action:Reiterated
Date:08/05/26
PSKY scores as neutral: improving revenue/gross margin and positive free cash flow are outweighed by persistently weak operating profitability and elevated leverage. Technically, the stock remains in a downtrend below major moving averages, which caps near-term confidence. Guidance upgrades and improving operational momentum from the earnings call help, while merger-related progress is supportive but still carries timing and execution risk.
Positive Factors
Direct-to-Consumer Subscriber Growth
A nearly 82M subscriber base with positive retention and double-digit DTC revenue growth creates durable recurring revenue and scale for marketing, ARPU expansion and ad monetization. Large subs support long-term content ROI and lessen reliance on volatile linear ad sales.
Negative Factors
Weak Operating Profitability
Persistently negative operating margins signal structural profitability issues despite revenue gains; this limits retained earnings, reduces reinvestment capacity, and makes durable margin recovery dependent on sustained content efficiency and DTC monetization improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Direct-to-Consumer Subscriber Growth
A nearly 82M subscriber base with positive retention and double-digit DTC revenue growth creates durable recurring revenue and scale for marketing, ARPU expansion and ad monetization. Large subs support long-term content ROI and lessen reliance on volatile linear ad sales.
Read all positive factors
Paramount Skydance Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down earnings by different business segments, providing insight into which areas drive growth and profitability.
Breaks down earnings by different business segments, providing insight into which areas drive growth and profitability.
Data provided by:
The Fly
The FlyParamount Skydance (PSKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.91B
Dividend Yield2.51%
Average Volume (3M)8.98M
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth1.14%
EPS Growth93.73%
CountryUS
Employees17,600
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.61
Shares Outstanding1,087,673,000
10 Day Avg. Volume9,243,660
30 Day Avg. Volume8,977,001
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$11.17Price Target Upside36.01% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.62
Revenue Forecast (FY)$29.87B
Paramount Skydance Business Overview & Revenue Model
Company Description
Paramount Skydance Corporation functions as a worldwide leader in media, streaming, and entertainment. Its extensive operations are strategically divided into three core divisions: Television Media, Direct-to-Consumer platforms, and Filmed Enterta...
How the Company Makes Money
null...
Paramount Skydance Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial progress: robust Paramount+ subscriber growth and engagement, double-digit DTC revenue growth, Studios returning to profitability with a larger slate, improved adjusted EBITDA and upgraded free cash flow guidance, meaningful run-rate cost synergies and significant product/tech convergence milestones. Offsetting these positives were persistent linear ad declines (TV Media down 14% in Q2), Pluto remaining a drag until its relaunch, ongoing litigation and timing risk around the Warner transaction with potential incremental costs, and elevated content investment pressuring near-term cash conversion. On balance, the company's execution gains and guidance upgrades outweigh the challenges, though some execution and timing risks remain.Positive Updates
Paramount+ Subscriber Growth and Engagement
Paramount+ reached 81.6 million global subscribers (nearly 82M), adding 2 million in the quarter and 4 million underlying subscribers before exiting hard bundles; the service posted its best quarter of retention ever and double-digit year-over-year growth in total view hours.
Negative Updates
TV Media Advertising Decline
TV Media advertising revenue declined 14% year-over-year in Q2, driven in part by lapping the NCAA Final Four (an ~8 percentage-point headwind) and the sale of Telefe and Chilevision (~3 percentage-point headwind).
Read all updates
Q2-2026 Updates
Positive
Negative
Paramount+ Subscriber Growth and Engagement
Paramount+ reached 81.6 million global subscribers (nearly 82M), adding 2 million in the quarter and 4 million underlying subscribers before exiting hard bundles; the service posted its best quarter of retention ever and double-digit year-over-year growth in total view hours.
Read all positive updates
Company Guidance
Paramount raised full‑year adjusted EBITDA guidance to $3.8–$3.9 billion while holding a $30 billion revenue outlook and increasing free cash flow conversion to at least 10% (from 5%), with Q3 revenue guided to $6.95–$7.15 billion (up 4–7% YoY) and Q3 adjusted EBITDA $875–$975 million; Q2 results included company adjusted EBITDA of $1.1 billion (up 27% YoY), Paramount+ at ~81.6 million subscribers (added 2 million in the quarter, 4 million underlying before hard‑bundle exits), Paramount+ revenue +16% YoY (≈1/3 from subs, 2/3 from ARPU), Studios revenue +16% and Studios adjusted EBITDA $36 million, TV Media profit +14%, and the company ended the quarter with $1.6 billion cash and $3.2 billion undrawn revolver; management is tracking to >$2.7 billion of run‑rate efficiencies by year‑end (>$3.0 billion expected total), expects DTC revenue and Pluto ad monetization to accelerate in the back half, and noted deal‑related financing costs of ~$8–9 million/month on the bridge (~$190 million if delayed to June) plus a ticking fee of $0.25/share per quarter (~$650 million/quarter) payable at close.Paramount Skydance Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
48
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.43B | 29.21B | 29.21B | 29.65B | 30.15B | 28.59B |
| Gross Profit | 10.46B | 9.78B | 8.27B | 7.26B | 9.90B | 10.45B |
| EBITDA | -4.57B | -4.92B | -4.92B | 85.00M | 2.60B | 19.93B |
| Net Income | -327.00M | -6.19B | -6.19B | -1.04B | 1.10B | 4.54B |
Balance Sheet | ||||||
| Total Assets | 44.41B | 43.34B | 46.17B | 53.54B | 58.39B | 58.62B |
| Cash, Cash Equivalents and Short-Term Investments | 1.63B | 3.27B | 2.66B | 2.46B | 2.88B | 6.27B |
| Total Debt | 15.16B | 14.81B | 15.83B | 16.12B | 17.57B | 19.63B |
| Total Liabilities | 31.60B | 30.45B | 29.39B | 30.49B | 34.79B | 35.65B |
| Stockholders Equity | 11.77B | 11.69B | 16.32B | 22.53B | 23.04B | 22.40B |
Cash Flow | ||||||
| Free Cash Flow | 440.00M | 323.00M | 489.00M | 147.00M | -139.00M | 599.00M |
| Operating Cash Flow | 650.00M | 485.00M | 752.00M | 475.00M | 219.00M | 953.00M |
| Investing Cash Flow | -3.03B | -160.00M | -115.00M | 849.00M | -744.00M | 2.16B |
| Financing Cash Flow | 177.00M | -911.00M | -380.00M | -1.75B | -2.76B | 83.00M |
Paramount Skydance Technical Analysis
Negative
8.21
Price Trends
9.60
Negative
9.92
Negative
11.57
Negative
Market Momentum
-0.46
Negative
40.77
Neutral
46.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSKY, the sentiment is Negative. The current price of 8.21 is below the 20-day moving average (MA) of 8.67, below the 50-day MA of 9.60, and below the 200-day MA of 11.57, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 46.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $298.60B | 22.20 | 47.96% | ― | 17.62% | 34.80% | |
71 Outperform | $167.04B | 15.37 | 10.29% | 1.58% | 4.02% | 27.66% | |
70 Outperform | $23.06B | 13.56 | 14.86% | 0.99% | 0.60% | -5.58% | |
67 Neutral | $13.54B | 29.86 | 67.11% | 2.86% | 12.55% | -0.50% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $65.94B | -38.12 | -4.94% | ― | -2.78% | 84.26% | |
50 Neutral | $8.91B | -14.07 | -4.64% | 2.44% | 1.14% | 93.73% |
* Communication Services Sector Average
PSKY
Paramount Skydance
8.38
-2.48
-22.84%
DIS
Walt Disney
98.18
-15.35
-13.52%
NFLX
Netflix
73.57
-44.28
-37.57%
FOXA
Fox
59.08
5.39
10.04%
WMG
Warner Music Group
25.80
-3.68
-12.49%
WBD
Warner Bros
25.79
13.00
101.64%
Paramount Skydance Corporate Events
Executive/Board ChangesShareholder Meetings
Paramount Skydance Shareholders Elect New Unified Board
Positive
Jul 23, 2026
On July 20, 2026, Paramount Skydance stockholders holding all voting power elected a slate of ten directors, including David Ellison, Safra A. Catz, and Sherry Lansing, to the board effective July 21, 2026, to serve until the next annual election....
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Paramount Skydance gains key merger approvals worldwide
Positive
Jul 22, 2026
Paramount Skydance Corporation and Warner Bros. Discovery, Inc. entered into a merger agreement on February 27, 2026, under which Warner Bros. Discovery will become a wholly owned subsidiary of Paramount Skydance. On July 10, July 14 and July 22, ...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Paramount Skydance Gains Key Global Merger Approvals
Positive
Jul 1, 2026
Paramount Skydance Corporation and Warner Bros. Discovery, Inc. signed a merger agreement on February 27, 2026, under which Warner Bros. Discovery will become a wholly owned subsidiary of Paramount Skydance. On June 28, 2026, Kuwait’s Compet...
Business Operations and StrategyShareholder Meetings
Paramount Skydance Sets Date for 2026 Annual Meeting
Neutral
Jun 29, 2026
Paramount Skydance Corporation announced it will hold its 2026 annual meeting of stockholders on July 21, 2026, as part of its regular corporate governance cycle. Stockholders will be able to access the Annual Meeting via the company’s inves...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Paramount Skydance Gains Key Approvals for Warner Merger
Positive
Jun 22, 2026
On February 27, 2026, Paramount Skydance Corporation agreed to merge Warner Bros. Discovery into a wholly owned subsidiary structure, a move aimed at consolidating their media and entertainment assets under PSKY. On June 20, 2026, the statutory wa...
M&A TransactionsRegulatory Filings and Compliance
Paramount Skydance Wins Key Global Merger Approvals
Positive
Jun 18, 2026
On February 27, 2026, Paramount Skydance Corporation and Warner Bros. Discovery, Inc. entered into a merger agreement under which Warner Bros. Discovery will become a wholly owned subsidiary of Paramount Skydance. On June 17, 2026, the companies s...
M&A TransactionsRegulatory Filings and Compliance
Paramount Skydance Gains ACCC Approval for Warner Merger
Positive
Jun 10, 2026
On February 27, 2026, Paramount Skydance Corporation agreed to merge its wholly owned subsidiary, Prince Sub Inc., with Warner Bros. Discovery, Inc., leaving Warner Bros. Discovery as a wholly owned subsidiary of Paramount Skydance. On June 9, 202...
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...
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.