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Paramount Skydance
(NASDAQ:PSKY)
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Rating:56Neutral
Price Target:
$10.00
▼(-14.82% Downside)
Action:Reiterated
Date:07/01/26
The score is held back primarily by weak financial performance—particularly deeply negative operating margins and shrinking free cash flow—despite improving revenue and gross margin. Earnings-call commentary is a material positive, highlighting streaming growth, subscriber/ARPU gains, and merger progress, but technicals remain bearish with the stock below key moving averages and ad/DTC margin headwinds still present.
Positive Factors
Streaming revenue & subscriber momentum
Sustained DTC growth and higher ARPU reflect improving monetization and a healthier subscriber mix after removing sub-$1 hard bundles. Durable subscriber gains and price realization support recurring revenue, content ROI, and scale economics that can drive long-term margin recovery as reach expands.
Negative Factors
Persistent operating losses
Deep negative operating margins signal that revenue scale has not yet translated into sustainable profits. Continued high content and SG&A spend, plus volatile earnings history, mean the company needs structural margin improvement and disciplined cost management to convert growth into durable free cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Streaming revenue & subscriber momentum
Sustained DTC growth and higher ARPU reflect improving monetization and a healthier subscriber mix after removing sub-$1 hard bundles. Durable subscriber gains and price realization support recurring revenue, content ROI, and scale economics that can drive long-term margin recovery as reach expands.
Read all positive factors
Paramount Skydance (PSKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.63B
Dividend Yield1.48%
Average Volume (3M)8.83M
Price to Earnings (P/E)―
Beta (1Y)0.81
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. Volume10,491,640
30 Day Avg. Volume8,832,195
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 Cap2.19
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit2.50
Enterprise Value/Ebitda-5.78
Forecast
1Y Price Target
$11.33Price Target Upside-3.46% Downside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.62
Revenue Forecast (FY)$29.84B
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
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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 | -4.41B | -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 | 16.59B | 14.81B | 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
10.38
Positive
10.41
Negative
12.60
Negative
Market Momentum
-0.12
Negative
55.23
Neutral
82.40
Negative
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 10.09, above the 50-day MA of 10.38, and below the 200-day MA of 12.60, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 82.40 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $172.78B | 15.89 | 10.29% | 1.10% | 4.02% | 27.66% | |
75 Outperform | $14.75B | 32.53 | 67.11% | 2.47% | 12.55% | -0.50% | |
72 Outperform | $326.97B | 24.57 | 49.24% | ― | 18.57% | 45.93% | |
70 Outperform | $22.41B | 13.20 | 14.86% | 0.75% | 0.60% | -5.58% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $11.63B | -18.37 | -4.64% | 1.48% | 1.14% | 93.73% | |
55 Neutral | $65.69B | ― | -4.94% | ― | -2.78% | 84.26% |
* Communication Services Sector Average
PSKY
Paramount Skydance
10.39
-1.93
-15.70%
DIS
Walt Disney
99.50
-21.90
-18.04%
NFLX
Netflix
77.65
-51.31
-39.79%
FOXA
Fox
56.48
2.15
3.96%
WMG
Warner Music Group
28.28
-0.59
-2.06%
WBD
Warner Bros
26.48
15.46
140.29%
Paramount Skydance Corporate Events
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...
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...
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.