Paramount Skydance (PSKY)
NASDAQ:PSKY
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Paramount Skydance
(NASDAQ:PSKY)
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Rating:55Neutral
Price Target:
$11.00
â–²(3.58% Upside)
Action:ReiteratedDate:04/10/26
The score is held back primarily by weak profitability and elevated leverage despite improved free cash flow. Earnings-call commentary and recent corporate actions are moderately supportive (reaffirmed targets, DTC momentum, synergies, and added liquidity), but technicals remain mixed with longer-term trend pressure and bearish MACD.
Positive Factors
Cash Generation
Persistent positive operating and free cash flow through 2023–2025, with a sharp improvement in 2025, provides a durable liquidity cushion that can fund content investment, support debt repayment and bridge integration costs. Reliable cash generation reduces short‑term refinancing pressure while management executes strategic initiatives.
Negative Factors
Elevated Leverage
Leverage rising to roughly 1.23x debt‑to‑equity by 2025 meaningfully reduces financial flexibility while the company operates through a loss cycle. Higher leverage increases refinancing, covenant and interest risks and constrains capital allocation, making sustained deleveraging essential to restore balance‑sheet resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Persistent positive operating and free cash flow through 2023–2025, with a sharp improvement in 2025, provides a durable liquidity cushion that can fund content investment, support debt repayment and bridge integration costs. Reliable cash generation reduces short‑term refinancing pressure while management executes strategic initiatives.
Read all positive factors
Paramount Skydance (PSKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.81B
Dividend Yield1.48%
Average Volume (3M)14.46M
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-0.48%
EPS Growth97.09%
CountryUS
Employees18,600
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.12
Shares Outstanding1,080,241,000
10 Day Avg. Volume15,016,422
30 Day Avg. Volume14,459,565
Financial Highlights & Ratios
PEG Ratio6.71
Price to Book (P/B)0.76
Price to Sales (P/S)0.30
P/FCF Ratio18.20
Enterprise Value/Market Cap1.91
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit2.31
Enterprise Value/Ebitda-4.51
Forecast
1Y Price Target
$11.38Price Target Upside7.16% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering10
EPS Forecast (FY)0.7
Revenue Forecast (FY)$29.93B
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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
Overall the call emphasized positive operational momentum: accelerating streaming growth (Paramount+ up ~17% YTD), a very strong initial UFC launch (7 million households), expanded content investment (+$1.5B) and an enlarged film slate (16 vs 8 films). Management reaffirmed guidance ($30B revenue, +4% YoY) and an adjusted EBIT target of $3.8B while outlining a path to improved DTC profitability, $3B+ in synergies and a plan to achieve investment‑grade metrics by 2027. The primary near‑term risks are Pluto’s monetization decline (non‑Paramount+ down 16% in Q4), expected theatrical revenue headwinds in 2026 due to tough comps, modest free‑cash‑flow conversion (~5% excluding restructuring) and $800M of restructuring charges. On balance, the highlights and forward plans materially outweigh the near‑term challenges.Positive Updates
Streaming Growth and Paramount+ Momentum
Paramount+ streaming growth reported up over 17% year‑to‑date; DTC (direct‑to‑consumer) segment grew 10% year‑over‑year in Q4. Management expects DTC to accelerate in 2026 and to be the primary revenue growth driver.
Negative Updates
Pluto Monetization Headwinds
Non‑Paramount+ (primarily Pluto) revenue declined 16% year‑over‑year in Q4 despite rising engagement; management acknowledged a monetization shortfall and outlined remediation plans but near‑term revenue pressure exists.
Read all updates
Q4-2025 Updates
Positive
Negative
Streaming Growth and Paramount+ Momentum
Paramount+ streaming growth reported up over 17% year‑to‑date; DTC (direct‑to‑consumer) segment grew 10% year‑over‑year in Q4. Management expects DTC to accelerate in 2026 and to be the primary revenue growth driver.
Read all positive updates
Company Guidance
Paramount reaffirmed FY guidance calling for about $30.0 billion of revenue (roughly +4% YoY) and adjusted EBIT of $3.8 billion (excludes ~$300 million of stock‑based comp), and said it expects to realize >$3.0 billion of synergies; management flagged DTC as the growth driver with DTC growth accelerating in 2026 (Paramount+ up >17% year‑to‑date, DTC grew ~10% YoY in Q4 with Paramount+ +17% and non‑Paramount+ −16%), underlying subscriber net adds improving, Q1 price increases taking effect, DTC ad revenue recovering, and a decision to exit uneconomic hard bundles that were <2% of P+ revenue in 2025; they increased content spend by $1.5 billion, plan to release 16 films this year versus 8 previously and have greenlit ~11 films and 11 series since the leadership change, and noted financial actions including >$300 million of debt paydown in Q1, ~$800 million of restructuring charges (excluded from FCF), ~5% free cash flow conversion this year excluding restructuring, and a commitment to achieve investment‑grade credit metrics by 2027.Paramount Skydance Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
42
Neutral
Cash Flow
55
Neutral
| 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
Positive
10.62
Price Trends
10.41
Positive
11.97
Negative
13.50
Negative
Market Momentum
<0.01
Negative
57.73
Neutral
78.36
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 10.62 is above the 20-day moving average (MA) of 9.52, above the 50-day MA of 10.41, and below the 200-day MA of 13.50, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 78.36 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $434.92B | 36.11 | 43.25% | ― | 15.49% | 35.54% | |
68 Neutral | $175.68B | 21.11 | 11.35% | 1.10% | 3.61% | 152.34% | |
68 Neutral | $24.59B | 34.54 | 16.22% | 0.75% | 14.91% | 9.30% | |
62 Neutral | $68.05B | 98.11 | 2.05% | ― | -4.29% | ― | |
61 Neutral | $14.89B | 22.61 | 48.36% | 2.47% | 4.37% | -16.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $11.81B | -1.44 | -4.36% | 1.48% | -0.48% | 97.09% |
* Communication Services Sector Average
PSKY
Paramount Skydance
10.62
0.10
0.94%
DIS
Walt Disney
99.17
15.44
18.44%
NFLX
Netflix
103.01
9.88
10.61%
FOXA
Fox
61.02
11.96
24.37%
WMG
Warner Music Group
28.50
-0.05
-0.18%
WBD
Warner Bros
27.44
19.42
242.14%
Paramount Skydance Corporate Events
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...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Paramount Skydance Sweetens Tender Offer for Warner Bros.
Positive
Feb 10, 2026
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 term...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Paramount Skydance Extends Tender Offer in WBD Battle
Positive
Jan 22, 2026
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 ame...
Business Operations and StrategyExecutive/Board Changes
Paramount Skydance appoints new CFO and board director
Positive
Jan 14, 2026
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, w...
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.