Paramount Exceeds Earnings and Revenue Forecasts Thanks to Streaming Growth

• Total revenue reached $7.35 billion (up 2% year-over-year), beating the $7.28 billion estimate, with Paramount+ adding 700,000 subscribers to reach nearly 80 million total
• Film studio revenue increased 11% to $1.28 billion, boosted by 'Scream 7' becoming the highest-grossing film in the franchise
• TV media segment declined 6% to $3.67 billion due to ongoing cord-cutting, while the company remains on track to cut $2.5 billion in costs by end of 2026

Paramount Exceeds Q1 Expectations on Streaming Strength

Financial Performance:

Paramount Skydance reported first-quarter revenue of $7.35 billion, beating analyst estimates of $7.28 billion and marking a 2% year-over-year increase. Adjusted earnings per share came in at 23 cents versus 18 cents expected. Net earnings reached $168 million, or 15 cents per share.

Streaming Business Growth:

The streaming division drove performance, generating $2.4 billion in revenue—an 11% increase from the prior year. Paramount+, the company's flagship streaming service, added 700,000 subscribers during the quarter, bringing total subscribers to nearly 80 million. The streaming segment includes Paramount+, BET+, and ad-supported platform Pluto TV.

Film Success:

The film studio delivered strong results with revenue rising 11% to $1.28 billion, boosted by "Scream 7," which became the franchise's highest-grossing entry. Paramount noted it has nearly doubled its 2026 film slate compared to 2025 following the Skydance merger.

Traditional TV Decline:

The TV media segment, encompassing CBS and cable networks like MTV, Nickelodeon, and BET, posted $3.67 billion in revenue—down 6% year-over-year due to continued cord-cutting pressures.

Strategic Outlook:

The company reaffirmed full-year guidance of $30 billion in revenue and $3.8 billion in adjusted EBITDA. Management confirmed plans to cut $2.5 billion in costs by end-2026, with total savings of $3 billion targeted through 2027. The pending acquisition of Warner Bros. Discovery is expected to close by the end of Q3 2026 after receiving regulatory approval.