Paramount Skydance (PSKY) Q1 2026 (USD): Adj. EPS 0.23 (exp. 0.15), Revenue 7.35bln (exp. 7.27bln), Paramount+ subscribers 79.6mln

Paramount Skydance's Q1 results reveal an adjusted EPS beat and a revenue surprise, which could hold positive implications for market sentiment.

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Guidance: 

  • Q2 revenue 6.75-6.95bln (exp. 7.07bln).
  • FY revenue 30bln (exp. 29.91bln).

Commentary:

  • Anticipate transformation costs of several hundred mln in Q2, which will impact reported free cash flow.
  • Expect Paramount+ quarter over quarter subscribers to be flattish in Q2
Context

However, the guidance for Q2 indicates a potential revenue miss against expectations along with anticipated transformation costs that may pressure free cash flow. This mixed outlook, especially flat subscriber growth for Paramount+, may dampen enthusiasm somewhat, suggesting a cautious approach from investors in the near term.

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