Paramount Skydance (PSKY) Stock Falls After Q4 Miss and Weak Guidance

TLDR

• Paramount Skydance (PSKY) missed Q4 earnings with an adjusted loss of $0.12 per share vs. the expected $0.01 loss
• Revenue came in at $8.15 billion, up 2.1% year-over-year, roughly in line with estimates
• Q1 2026 revenue guidance of $7.15–$7.35 billion came in below the $7.36 billion consensus
• Paramount+ closed the year with 78.9 million paid subscribers; UFC content expected to drive growth
• Paramount raised its bid for Warner Bros. Discovery to $31 per share, topping Netflix’s $27.75 offer

Paramount Skydance reported mixed fourth-quarter results on February 26, posting an adjusted loss per share of $0.12. That was well below the consensus estimate of a $0.01 loss.

Total revenue for the quarter came in at $8.15 billion, a 2.1% increase year-over-year and roughly in line with analyst expectations of $8.14 billion.

The filmed entertainment segment was a bright spot, reporting a 16% revenue jump. That gain was driven mainly by the consolidation of Skydance licensing rather than organic box office growth.

Paramount Skydance Corporation Class B Common Stock, PSKY

The TV Media unit told a different story. Revenue there fell 5% to $4.71 billion, hurt by weaker advertising demand and a drop in affiliate revenue.

Cord-cutting continues to weigh on legacy TV. Paramount acknowledged it expects TV Media revenue to decline this year, “mostly in line with industry pay TV headwinds.”

Guidance Comes in Light

For Q1 2026, Paramount guided revenue between $7.15 billion and $7.35 billion. The Wall Street consensus was $7.36 billion. In the same quarter last year, revenue was $7.19 billion.

For the full year 2026, the company projects $30 billion in revenue, which would be up about 4% from 2025.

There’s a catch, though. Paramount warned that Paramount+ will take a hit from exiting a “hard bundle” arrangement, which could cost the service between 4 and 5 million subscribers.

Paramount+ and the Streaming Picture

Paramount+ ended 2025 with 78.9 million paid subscribers. The company is betting that adding UFC to its exclusive lineup will help drive subscriber growth in 2026.

The Warner Bros. Discovery Bid

The bigger headline may be what’s happening off the earnings sheet. On Tuesday, Paramount raised its offer for Warner Bros. Discovery to $31 per share, up from $30.

That move is a direct counter to Netflix’s competing bid of $27.75 per share for WBD’s streaming and studio assets.

WBD’s board is now weighing whether Paramount’s revised all-company bid represents a superior offer. The prize includes a film and TV library that holds franchises like Harry Potter and Game of Thrones.

CEO David Ellison called the WBD bid an “accelerant” for Paramount’s goals in an investor letter, but declined to comment further on the deal talks.

He also took care to reassure investors, stating that Paramount Skydance remains “confident in our standalone strategy and growth trajectory.”

PSKY currently holds a Strong Sell consensus rating on TipRanks, based on zero Buy ratings, one Hold, and four Sells. The average price target of $12.25 implies roughly 20.6% upside from current levels.

Over the past year, PSKY stock has dropped 9.5%.

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