Paramount Skydance (PSKY) AI Stock Analysis

• Market Cap: $14.91B
• Dividend Yield: 1.48%
• Average Volume (3M): 7.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• 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: 1,071,667,000
• 10 Day Avg. Volume: 8,578,671
• 30 Day Avg. Volume: 7,445,441
• 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: 1.72
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: -5.12
• 1Y Price Target: $11.83
• Price Target Upside: 5.84% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1
• Revenue Forecast (FY): $29.98B

• Rating: 54 Neutral
• Price Target: $14.00 ▲(25.22% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weak profitability trends and elevated balance-sheet risk despite positive free cash flow. Offsetting this, the latest earnings call conveyed improving DTC momentum and reaffirmed guidance, while technicals and valuation remain mixed due to negative earnings and only modest yield.

Positive Factors

DTC streaming momentum

Sustained direct‑to‑consumer growth signals an expanding recurring‑revenue base and stronger customer engagement. Over 17% P+ YTD growth and 10% DTC YoY indicates the company can scale subscription and ad revenue, improving long‑term margin prospects as fixed content costs spread across more subscribers.

Improving free cash flow generation

Positive and improving free cash flow provides durable financial flexibility to fund content investments, service debt, and execute strategic initiatives. Even with accounting losses, stronger FCF reduces reliance on external financing and supports de‑risking the business over the medium term.

Material scale and synergy potential from WBD deal

Acquiring Warner Bros. Discovery transforms content depth, distribution reach and technology scale. ~$6B+ in targeted synergies and combined IP libraries create durable competitive advantages, enabling cost rationalization and monetization across streaming, theatrical and global licensing over multiple years.

Negative Factors

Deep and widening profitability losses

Sizable negative margins and persistent operating losses weaken return generation and limit internal reinvestment. Continued losses increase the risk that content economics and restructuring must materially improve to restore sustainable operating profitability and long‑term shareholder returns.

Elevated leverage and large deal financing

Rising leverage and sizable transaction debt materially reduce financial flexibility and increase refinancing and rating risk. Higher interest and covenant pressure constrains capital available for content, marketing and integration, making operational improvement and synergy delivery critical to long‑term stability.

Pluto monetization headwinds

Engagement without monetization highlights structural ad and packaging limits for free/FAST businesses. A 16% decline in Pluto revenue signals that improving MAUs alone may not translate to sustainable ad income, requiring platform product changes and pricing/partner shifts to restore durable cash generation.

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

Paramount Skydance generates revenue through multiple streams, primarily from the production and distribution of films and television shows. The company earns money by licensing its content to streaming platforms, television networks, and international distributors. Additionally, PSKY engages in merchandising and branding opportunities related to its popular franchises and characters. Revenue is further bolstered by partnerships with major studios, investors, and co-production deals that allow for shared financial risk and expanded market reach. The firm also explores digital content monetization, including advertising revenue from online platforms, enhancing its earnings potential in the digital space.

Paramount Skydance Financial Statement Overview

Summary

Financials are mixed: the income statement has deteriorated sharply into sizable losses with deeply negative margins (key weakness), while cash flow is a relative bright spot with positive and improving free cash flow. Balance sheet risk is elevated due to rising leverage and declining equity, despite some debt reduction in 2025.

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: Neutral
• Last Price: 11.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSKY, the sentiment is Neutral. The current price of 11.18 is above the 20-day moving average (MA) of 10.76, below the 50-day MA of 11.88, and below the 200-day MA of 13.81, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 36.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$406.34B	38.08	42.76%	―	15.49%	35.54%
DIS	69 Neutral	$187.85B	15.62	11.65%	1.10%	3.61%	152.34%
FOXA	68 Neutral	$22.93B	13.56	16.87%	0.75%	14.91%	9.30%
WBD	62 Neutral	$69.86B	98.15	1.36%	―	-4.29%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WMG	59 Neutral	$14.94B	49.44	47.75%	2.47%	4.37%	-16.22%
PSKY	54 Neutral	$14.91B	-30.48	-4.43%	1.48%	-0.48%	97.09%

Paramount Skydance Corporate Events

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.

Paramount Skydance extends enhanced cash offer for WBD

On December 22, 2025, Paramount Skydance Corporation amended and extended its previously announced $30-per-share all-cash tender offer to acquire all outstanding shares of Warner Bros. Discovery, Inc., directly challenging WBD’s agreement to pursue a separate transaction with Netflix. To address concerns raised by WBD over financing and deal certainty, Paramount added an irrevocable personal guarantee from Larry Ellison for $40.4 billion of equity financing and potential damages, committed not to revoke or strip assets from the long-standing Ellison family trust, disclosed the trust’s ownership of roughly 1.16 billion Oracle shares, enhanced operational flexibility for WBD in a proposed merger agreement, increased its regulatory reverse termination fee to $5.8 billion and maintained conditions including WBD’s continued ownership of its Global Networks business. Paramount criticized WBD’s disclosures around the Netflix deal as incomplete, argued its fully financed cash bid remains superior for WBD shareholders and stakeholders, and extended the tender offer’s expiration to January 21, 2026, with 397,252 shares reported as validly tendered as of December 19, 2025.

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 Announces Tender Offer for Warner Bros.

On December 8, 2025, Paramount Skydance Corporation announced an all-cash tender offer to acquire all outstanding shares of Warner Bros. Discovery, Inc. for $30 per share. This proposal is positioned as a superior alternative to a competing offer from Netflix, which Paramount argues provides inferior value and involves a complex regulatory process. Paramount’s offer is supported by significant financial backing and aims to create a combined entity that enhances competition, supports creative talent, and strengthens the theatrical and direct-to-consumer markets.

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.