Paramount Global and Skydance Media’s combined earnings for the quarter exceeded analyst projections by $1.75 per share, driven by cost reductions and operational efficiencies following their merger. The adjusted earnings per share (EPS) of $1.45 surpassed the consensus estimate of -$0.30, according to data compiled by Refinitiv.
Revenue, however, fell short of estimates, declining 8% year-over-year to $7.2 billion. Analysts had forecast $7.5 billion, reflecting weaker-than-expected advertising sales and subscriber declines in traditional linear television. The underperformance underscores challenges in integrating legacy media assets with Skydance’s production and streaming operations.
Management cited ongoing investments in content and technology as key drivers of the earnings beat, offsetting pressure from declining linear TV advertising. The company maintained its full-year guidance, reaffirming confidence in long-term synergies despite near-term revenue headwinds.
Shares of Paramount Global were little changed in pre-market trading, indicating investor focus on the revenue shortfall rather than the earnings beat.
