Paramount Skydance (PSKY) AI Stock Analysis

• Market Cap: $10.17B
• Dividend Yield: 1.48%
• Average Volume (3M): 15.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -0.48%
• EPS Growth: 97.09%
• Country: US
• Employees: 18,600
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.12
• Shares Outstanding: 1,080,241,000
• 10 Day Avg. Volume: 14,199,552
• 30 Day Avg. Volume: 15,039,586
• PEG Ratio: 6.71
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 18.20
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 2.15
• Enterprise Value/Ebitda: -4.19
• 1Y Price Target: $11.63
• Price Target Upside: 27.10% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10
• EPS Forecast (FY): 0.73
• Revenue Forecast (FY): $29.93B

• Rating: 57 Neutral
• Price Target: $9.50 ▲(3.83% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

PSKY scores in the upper-mid range primarily because deteriorating profitability and rising leverage are significant fundamental risks despite improving free cash flow. The earnings call adds support via reaffirmed guidance and accelerating DTC/Paramount+ momentum, while technicals are mixed (stronger short-term trend but weaker long-term setup). Valuation is constrained by losses (negative P/E), and the large M&A-driven corporate event is a potential upside catalyst with material execution/regulatory risk.

Positive Factors

Direct-to-Consumer (streaming) growth

Sustained DTC subscriber and engagement growth is a durable revenue lever: higher Paramount+ adoption and accelerating DTC trends support subscription and ad monetization, improve lifetime value, and underpin cross‑platform marketing and IP monetization over the next several years.

Improving free cash flow generation

Positive and improving free cash flow strengthens liquidity and funds content spend, debt paydown and integration costs; durable cash generation reduces near‑term refinancing risk and supports management's path to investment‑grade metrics over the medium term.

Transformative Warner Bros. Discovery merger and synergies

A successful combination would materially increase scale, IP breadth and bargaining power with advertisers, distributors and talent; estimated multi‑billion synergies and combined sports/content assets can sustainably improve margins and long‑term competitive position.

Negative Factors

Deteriorating profitability and negative EBITDA

Shifting from positive earnings to sizable operating losses undermines internal reinvestment capacity and return on capital; sustained negative EBITDA raises execution risk on content investments and complicates progress toward adjusted EBIT targets and credit improvement plans.

Rising leverage and weakened equity base

Material increase in leverage reduces financial flexibility and increases interest and refinancing risk, particularly while profitability is weak; higher debt levels constrain strategic optionality and make achieving investment‑grade targets more challenging without sustained cash‑flow improvement.

Pluto FAST monetization and TV media revenue pressure

Declining monetization on FAST/avod platforms and structural TV ad weakness can persistently cap ad revenue upside; if Pluto and linear ad recovery lag, DTC profitability and overall revenue mix improvements will be harder to sustain despite subscriber growth.

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 domestic broadcast television network; CBS Stations, a television station; and international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; and domestic premium and basic cable networks, such as Nickelodeon, MTV, CMT, Comedy Central, BET, Paramount+ with SHOWTIME, Paramount Network, The Smithsonian Channel, BET Media Group, CBS Sports Network, and international extensions of these brands. This segment also provides domestic and international television studio operations, including CBS Studios, Paramount Television Studios, and Showtime/MTV Entertainment Studios; CBS Media Ventures, which produces and distributes first run syndicated programming; and digital properties consist of CBS News Streaming and CBS Sports HQ. The Direct-to-Consumer segment offers a portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, and BET+. The Filmed Entertainment segment produces and acquires films, series, and short-form content for release and licensing around the world, including in theaters, on streaming services, on television, through digital home entertainment, and DVDs/Blu-rays; and operates a portfolio consist of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax. It provides production, distribution, and advertising solutions. The company was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was founded in 1914 and is headquartered in New York, New York. Paramount Global is a subsidiary of National Amusements, Inc.

How the Company Makes Money

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Paramount Skydance Financial Statement Overview

Summary

Fundamentals are mixed: cash flow is a relative strength with positive and improving free cash flow (2023–2025), but the income statement has deteriorated sharply with large, deepening losses and negative EBITDA. Balance-sheet risk has increased as leverage rose (debt-to-equity up to ~1.23 in 2025) and equity declined, limiting flexibility if profitability does not recover.

Income Statement

Revenue has been largely flat over 2023–2025, with a sharp rebound in 2025 revenue growth, but profitability has deteriorated materially. After positive earnings in 2020–2022, the company shifted to sizable losses in 2023 and worsened further in 2024–2025, with net margins deeply negative. Gross margin improved in 2025 versus 2023–2024, but operating performance is the core issue—losses at the operating line and negative EBITDA indicate cost structure and/or impairment/restructuring pressure overwhelming the revenue base.

Balance Sheet

Leverage is meaningful and has risen: debt-to-equity moved from ~0.72 (2023) to ~0.97 (2024) and ~1.23 (2025), which reduces flexibility during a loss cycle. Equity has also trended down meaningfully since 2023, consistent with earnings pressure. Total debt declined in 2025 versus 2024, which is a positive step, but returns on equity turned strongly negative as losses scaled, leaving the balance sheet more exposed if weak profitability persists.

Cash Flow

Cash generation is a relative bright spot: operating cash flow and free cash flow are positive in 2023–2025, and free cash flow improved sharply in 2025 versus prior years. That said, operating cash flow is modest relative to the size of the business and debt load, and cash flow coverage of obligations appears thin based on the low operating cash flow coverage ratio each year. Free cash flow remains positive despite net losses, which helps near-term liquidity, but also suggests earnings quality concerns given the large accounting losses alongside positive cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.21B	29.21B	29.65B	30.15B	28.59B
Gross Profit	9.78B	8.27B	7.26B	9.90B	10.45B
EBITDA	-4.92B	-4.92B	85.00M	2.60B	19.93B
Net Income	-6.19B	-6.19B	-1.04B	1.10B	4.54B
Balance Sheet
Total Assets	43.34B	46.17B	53.54B	58.39B	58.62B
Cash, Cash Equivalents and Short-Term Investments	3.27B	2.66B	2.46B	2.88B	6.27B
Total Debt	14.38B	15.83B	16.12B	17.57B	19.63B
Total Liabilities	30.45B	29.39B	30.49B	34.79B	35.65B
Stockholders Equity	11.69B	16.32B	22.53B	23.04B	22.40B
Cash Flow
Free Cash Flow	489.00M	489.00M	147.00M	-139.00M	599.00M
Operating Cash Flow	752.00M	752.00M	475.00M	219.00M	953.00M
Investing Cash Flow	12.00M	-115.00M	849.00M	-744.00M	2.16B
Financing Cash Flow	-507.00M	-380.00M	-1.75B	-2.76B	83.00M

Paramount Skydance Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 9.15 is below the 20-day moving average (MA) of 10.67, below the 50-day MA of 11.01, and below the 200-day MA of 13.66, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 11.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSKY.

Paramount Skydance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NFLX	76 Outperform	$387.68B	36.11	43.25%	―	15.49%	35.54%
DIS	68 Neutral	$176.28B	21.11	11.35%	1.10%	3.61%	152.34%
FOXA	68 Neutral	$23.33B	34.54	16.22%	0.75%	14.91%	9.30%
WBD	62 Neutral	$68.00B	98.11	2.05%	―	-4.29%	―
WMG	61 Neutral	$12.48B	22.61	48.36%	2.47%	4.37%	-16.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PSKY	57 Neutral	$10.17B	-1.44	-4.36%	1.48%	-0.48%	97.09%

Paramount Skydance Corporate Events

Paramount Skydance Announces Transformative Warner Bros. Discovery Merger

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 value, with a per‑day “ticking” fee accruing if closing slips past September 30, 2026. The deal, unanimously approved by both boards and expected to close in the third quarter of 2026 subject to shareholder and regulatory approvals, will be financed through $47 billion of new Paramount Class B shares backed by Ellison family and RedBird PIPE commitments and a $54 billion bridge loan plus revolving credit facility.

The combined company aims to be a “next‑generation” media leader by uniting Paramount+, HBO Max and Pluto into a stronger global streaming competitor, while committing to at least 30 theatrical films annually and maintaining robust third‑party licensing to support the wider content ecosystem. Management highlights more than $6 billion in expected synergies from technology integration and operational efficiencies, and stresses that an enlarged IP library, extensive sports rights and a broad linear network footprint should enhance bargaining power with advertisers, distributors and talent, though the transaction faces significant regulatory scrutiny and substantial termination and break‑fee structures on both sides.

The most recent analyst rating on (PSKY) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Paramount Skydance stock, see the PSKY Stock Forecast page.

Paramount Skydance Clears U.S. Hurdle in WBD Deal

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 statutory impediment in the U.S. to closing the deal. The transaction, which also received German foreign investment clearance on January 27, 2026, still requires a definitive merger agreement with WBD, shareholder approvals, and additional regulatory clearances in other jurisdictions, and its completion would significantly reshape the competitive landscape in global media and entertainment if finalized.

The most recent analyst rating on (PSKY) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Paramount Skydance stock, see the PSKY Stock Forecast page.

Paramount Skydance Sweetens Tender Offer for Warner Bros.

On February 10, 2026, Paramount Skydance amended its $30-per-share all-cash tender offer to acquire Warner Bros. Discovery, adding a $0.25-per-share quarterly ticking fee after December 31, 2026 and committing to fund WBD’s $2.8 billion termination fee owed to Netflix. Paramount argues its proposal offers superior and more certain value than Netflix’s variable cash-and-equity structure, while providing regulatory clarity and support for WBD’s complex debt obligations.

The revised bid includes backstopping a $1.5 billion debt exchange, potential refinancing of WBD’s $15 billion bridge loan, and fully financed commitments totaling $97.6 billion in equity and debt, underpinned by a personal guarantee from Larry Ellison. Paramount has also advanced regulatory approvals, certifying compliance with a U.S. Department of Justice second request on February 9, 2026 and securing German foreign investment clearance in January, while urging WBD’s board and shareholders to reject the Netflix deal and engage with its offer.

The most recent analyst rating on (PSKY) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Paramount Skydance stock, see the PSKY Stock Forecast page.

Paramount Skydance Extends Tender Offer in WBD Battle

On January 22, 2026, Paramount Skydance Corporation announced it had filed preliminary proxy materials with the U.S. Securities and Exchange Commission to lobby Warner Bros. Discovery shareholders to vote against Warner Bros. Discovery’s amended merger agreement with Netflix, and extended its $30 per share all-cash tender offer for Warner Bros. Discovery’s Series A common stock to February 20, 2026, valuing the target at an enterprise value of $108.4 billion versus the $82.7 billion enterprise value ascribed to the Netflix deal. Paramount argued that the consideration WBD investors would receive under the Netflix transaction is materially lower and more uncertain than its cash proposal, particularly given leverage assumptions for the carved-out Discovery Global business, and criticized the WBD board for withholding detailed information on Discovery Global’s capital structure while seeking shareholder approval. The company also highlighted what it described as substantial regulatory risks to the Netflix combination, especially in Europe where Netflix already dominates streaming, contending that a WBD–Netflix tie-up would deepen market concentration and harm consumers and content creators, whereas a Paramount–WBD combination would be more pro‑competitive; Paramount reported that roughly 168.5 million WBD shares had been validly tendered as of late January 21, 2026, underlining the intensity of the contest for control and the potential for a realignment of power among major U.S. entertainment and streaming players.

The most recent analyst rating on (PSKY) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Paramount Skydance stock, see the PSKY Stock Forecast page.

Paramount Skydance appoints new CFO and board director

On January 13–15, 2026, Paramount, a Skydance Corporation, reshaped its senior leadership and board by appointing Dennis K. Cinelli as Chief Financial Officer and adding seasoned operator Andrew Campion as an independent director. Cinelli, who previously led finance and mobility businesses at Uber and served as CFO of Scale AI, stepped down from the Paramount Skydance board to assume the CFO role, succeeding interim finance chief Andrew C. Warren, who will remain with the company as a strategic advisor. Cinelli’s five-year employment agreement includes a multimillion-dollar base salary, bonus opportunity, substantial time-vested restricted stock awards in Class B common stock, relocation support, and robust severance protections designed to secure continuity in the finance function and align his incentives with shareholders. Campion, designated as a director nominee by Chairman and CEO David Ellison and currently Chairman and CEO of Unrivaled Sports, joins the board and Audit Committee with an equity-based director compensation package, bringing extensive finance, strategy, and operational expertise from senior roles at Nike and The Walt Disney Company as Paramount seeks to drive growth and innovation across its global media and direct-to-consumer platforms.

The most recent analyst rating on (PSKY) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Paramount Skydance stock, see the PSKY Stock Forecast page.