By Kelly Cloonan

Paramount recorded higher quarterly revenue as streaming and studio gains offset a decline in its TV media segment, while the company works to finalize its blockbuster acquisition of Warner Bros. Discovery.

The company's revenue ticked up 2% to $7.35 billion, topping analyst estimates of $7.28 billion, according to FactSet. First-quarter profit came in at $168 million, or 15 cents a share, compared with $152 million, or 22 cents a share, a year earlier. Adjusted earnings per share were 23 cents, topping analyst estimates of 15 cents a share.

The entertainment company, which owns CBS, Comedy Central, Nickelodeon and its namesake studio, continues to see growth in its streaming service and studio business as it prepares to merge with Warner Bros Discovery, owner of HBO, HBO Max streaming service and CNN.

Paramount in February announced its deal to buy Warner in a $81-billion deal, beating out Netflix. Last month, Warner Discovery shareholders approved the sale, which is pending regulatory review. Paramount on Monday said it is on track to close the deal by the end of the third quarter.

Paramount said revenue for its direct-to-consumer segment rose to $2.4 billion, up 11% compared to the same quarter a year ago.

The Paramount+ streaming service ended the quarter with 79.6 million subscribers, up 2% from a year ago, compared with analysts' forecast of 79.9 million subscribers. The company attributed the streaming service's growth to such popular series as Taylor Sheridan's "Landman," "The Madison" and "Marshals."

Paramount's studios business also posted growth, with revenue up 11% to $1.28 billion, helped by the box office performance of "Scream 7." Revenue from its television unit, meanwhile, fell 6% to $3.67 billion, hurt by declines in both advertising and affiliate revenue.

The company reiterated its full-year guidance. Paramount continues to guide for revenue of $30 billion and adjusted earnings before interest, taxes, depreciation and amortization of $3.8 billion for 2026. The company expects revenue for the year will be relatively more weighted to the second half of the year, and now expects profitability will skew slightly towards the first half.

For the current quarter, Paramount forecast revenue of $6.75 billion to $6.95 billion and adjusted Ebitda of $900 million to $1 billion. Analysts projected revenue of $7.07 billion on adjusted Ebitda of $861.8 million.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 04, 2026 16:01 ET (20:01 GMT)

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