Paramount Skydance raises full-year profit guidance, remains 'confident' about WBD merger

Paramount Skydance raised its full-year guidance on Tuesday and reported second-quarter results that showcased the continued strengths of streaming and weaknesses of linear TV.

While Paramount beat Wall Street expectations for revenue and reported gains in its streaming unit, led by its Paramount+ streaming service, its portfolio of cable TV networks continued to weigh on the overall company.

Still, Paramount noted that cost cutting and its "creative execution" for the traditional TV business helped to improve margins and profit in the quarter.

Paramount reported net earnings attributable to the company of $41 million, or 4 cents per share, versus $57 million, or 8 cents per share, in the comparable year-earlier period.

The company's reported EPS for the second quarter was not comparable to Wall Street estimates of 15 cents per share adjusted, according to LSEG.

Paramount reported $6.91 billion in total revenue, up slightly year over year. Revenue for the direct-to-consumer streaming segment — which consists of Paramount+, BET+ and the free, ad-supported Pluto TV — was up 9% to $2.47 billion, while film studios revenue increased 16% to $1.31 billion. TV media revenue declined 9% to $3.13 billion.

The company said the second quarter was its "best quarter for retention in Paramount+'s history," due to series like the "Yellowstone" spinoff "Dutton Ranch," as well as live sports like the UFC and offering of the FIFA World Cup in parts of Latin America.

Paramount+ added 2 million subscribers during the quarter, bringing its total to 81.6 million global customers.

The company said Tuesday it was raising its full-year 2026 guidance for adjusted earnings before interest, taxes, depreciation and amortization to a range of $3.8 billion to $3.9 billion, due to savings from last year's merger of Paramount and Skydance. The company has said it plans to save $3 billion from the consolidation.

Paramount still expects total revenue in 2026 of $30 billion, representing 4% growth year over year. Direct-to-consumer revenue from both streaming subscriptions and advertising is expected to accelerate for the year.

For the third quarter, Paramount expects total revenue of between $6.95 billion and $7.15 billion and for Paramount+ subscriber additions to be "flattish" quarter over quarter.

Tuesday's earnings report comes nearly one year since the completion of Skydance's merger with Paramount, putting the storied Hollywood company under the leadership of CEO David Ellison.