Title

Earning Preview: Paramount Skydance Corp’s revenue is expected to increase by 0.53%, and institutional views are bearish

Abstract

Paramount Skydance Corp will release its quarterly results on February 25, 2026 Post Market; this preview synthesizes recent financial performance, official forecasts, segment dynamics, and current analyst sentiment to frame expectations ahead of the announcement.

Market Forecast

Paramount Skydance Corp’s current-quarter forecast indicates total revenue of $8.14 billion, representing 0.53% year-over-year growth, alongside an estimated adjusted EPS of -$0.01, reflecting a year-over-year deterioration of 107.36%, and projected EBIT of $21.26 million, down 94.65% year-over-year. The company has not provided explicit margin guidance for the quarter; consensus commentary centers on revenue stabilization and a cautious earnings profile given the negative EPS and sharp EBIT compression implied by the estimates.

Within the reported business mix, TV Media remains the anchor segment with last-quarter revenue of $3.80 billion and a contribution of roughly 56.64% to the company’s total, while Direct-to-Consumer, at $2.17 billion, is positioned as the critical pathway for engagement and monetization in the current operating plan. The most promising segment in terms of strategic influence on near-term performance is Direct-to-Consumer (revenue of $2.17 billion last quarter), where the trajectory of unit economics and content monetization is expected to shape the earnings path; year-over-year segment growth was not disclosed in the available data.

Last Quarter Review

In the last reported quarter, Paramount Skydance Corp delivered revenue of $6.70 billion (down 0.43% year-over-year), a gross profit margin of 35.20%, a GAAP net loss attributable to the parent of $257.00 million, a net profit margin of -3.83%, and adjusted EPS of -$0.12 (down 124.49% year-over-year). Net profit swung deeply on a quarter-over-quarter basis (down 550.88% QoQ), underscoring earnings pressure from the current cost base and mix, while revenue came in $271.32 million below the prior estimate and EBIT reached $324.00 million, down 3.86% year-over-year.

The main business highlights show TV Media at $3.80 billion, Direct-to-Consumer at $2.17 billion, and Games & Entertainment at $756.00 million, with TV Media accounting for about 56.64% of total revenue, Direct-to-Consumer 32.33%, and Games & Entertainment 11.28%; segment-level year-over-year growth rates were not disclosed.

Current Quarter Outlook

TV Media

TV Media, with $3.80 billion in last-quarter revenue and approximately 56.64% of the company’s total, remains central to the near-term financial cadence. The current quarter’s revenue forecast of $8.14 billion implies modest year-over-year top-line growth of 0.53%, pointing to a stabilization narrative that often relies on programming slates and affiliate and advertising trends within the linear and distribution footprint. Even with a stable top-line backdrop, the negative EPS estimate (-$0.01) and the forecasted 94.65% year-over-year decline in EBIT suggest margin headwinds remain material, likely tied to cost inflation and the evolving mix toward content and distribution needs. The net-profit margin last quarter was -3.83%, and while the company has not issued explicit margin guidance, the forecasted earnings metrics indicate that TV Media’s contribution to margin recovery will depend on disciplined spending, schedule optimization, and consistent monetization of premium events in the period ahead.

The segment’s operational emphasis is typically on monetizing flagship content and live programming through carriage fees, advertising, and associated distribution. Given the forecast’s cautious EPS and EBIT profile, incremental efficiency gains and pricing levers will be critical to offset any softness in cyclical ad demand. The quarter’s revenue stabilization narrative aligns with a focus on maintaining audience engagement and maximizing yield on high-visibility content windows, which would preserve the segment’s capacity to underpin the consolidated top line even amid broader margin pressures.

Direct-to-Consumer

Direct-to-Consumer generated $2.17 billion of revenue last quarter, contributing roughly 32.33% of total revenue, and stands as the key strategic lever for improving consolidated earnings quality over time. The company’s current-quarter EPS estimate of -$0.01 and the substantial year-over-year decline in EBIT (-94.65%) flag that the earnings path remains sensitive to streaming unit economics, content amortization, and subscriber mix. With gross margin previously at 35.20% for the consolidated entity and no margin guidance provided for the quarter, the segment’s influence will likely be judged through indicators such as engagement, churn moderation, and content release pacing.

The near-term challenge is aligning content investment with revenue realization—balancing premium releases against subscription and advertising tiers to stabilize ARPU and lower per-unit distribution costs. In the absence of disclosed segment-level year-over-year growth, expectations center on operational discipline: optimizing content windows, calibrated marketing spend, and leveraging bundled offerings or distribution partnerships to improve contribution margin. The segment’s scale and consumer touchpoints can provide incremental resilience to the consolidated top line, but earnings uplift will depend on the pace at which losses narrow and how effectively the company transitions toward a more balanced profitability profile in streaming.

Key Stock Price Drivers This Quarter

Earnings trajectory is the dominant driver: the forecasted adjusted EPS of -$0.01 and EBIT of $21.26 million (down 94.65% year-over-year) imply that margin performance, cost controls, and cash generation will be closely scrutinized. The last quarter’s net loss of $257.00 million and net margin of -3.83% set a benchmark for investors to assess whether efficiency gains and content monetization can produce measurable sequential improvement. Given the slight revenue uptick implied for the quarter (0.53% year-over-year), any positive deviation in EPS or EBIT versus the forecast would likely be taken as a signal of improved execution on cost and content scheduling.

Corporate actions are another visible driver. During the current window, Paramount Skydance Corp revised its offer terms in connection with a proposed acquisition of Warner Bros. Discovery, including a commitment to cover a $2.80 billion termination fee under certain scenarios. These steps frame a competitive M&A landscape and could have implications for capital allocation and investor perception of strategic priorities. While transaction outcomes remain uncertain, markets typically weigh potential dilution, integration complexity, and investment return thresholds against the strategic merits of scale and content synergies, and that calculus can influence valuation multiples and near-term volatility.

Finally, business mix dynamics matter. TV Media’s share of revenue (about 56.64% last quarter) provides stability to the consolidated top line, while Direct-to-Consumer (32.33% of total) remains pivotal for the company’s multi-year earnings pathway. The degree to which TV Media maintains monetization power and Direct-to-Consumer narrows losses will shape expectations for margin normalization. With the current-quarter forecasts signaling cautious earnings, the stock’s reaction will hinge on whether management demonstrates traction on operating leverage—particularly in content amortization and marketing spend—and whether any announced partnerships or distribution changes yield measurable improvements in unit economics.

Analyst Opinions

Bearish views currently dominate the limited set of recent opinions captured within the period. On January 22, 2026, Bernstein maintained a Sell rating on Paramount Skydance Corp, with a price target of $12.00, reflecting caution around the near-term earnings setup and valuation. The ratio of bearish to bullish views, based on items within the eligible date range, stands at 100% bearish versus 0% bullish, and we therefore present only the majority perspective.

The Sell stance is broadly consistent with the company’s current-quarter forecast data showing negative adjusted EPS (-$0.01) and a sharp year-over-year EBIT decline (-94.65%). The forecasted 0.53% year-over-year revenue increase suggests stabilization rather than acceleration, which, paired with last quarter’s net profit margin of -3.83% and the quarter-over-quarter swing in net profit (-550.88%), maintains a conservative framing of near-term earnings risk. From a valuation perspective, investors often require clearer evidence of margin recovery and sustained streaming unit-economics improvement before assigning higher multiples, and the present combination of modest revenue growth and negative EPS provides limited support for multiple expansion at this stage.

Moreover, the company’s recent corporate actions—such as revising terms in pursuit of a Warner Bros. Discovery transaction and offering to fund a $2.80 billion termination fee—introduce additional layers for the market to evaluate, including capital deployment priorities, integration risks, and return thresholds. While strategic moves can potentially reshape content breadth and distribution leverage, they can also prompt scrutiny of balance sheet flexibility and the timeline to earnings accretion. In this context, bearish analysts emphasize caution until there is quantifiable evidence that the cost of growth (both organic and inorganic) aligns with a durable path to positive EPS and expanding EBIT.

Connecting the analyst viewpoint to operational metrics, the company’s last-quarter revenue of $6.70 billion and gross margin of 35.20% provide a base to measure progress in the forthcoming print. To challenge the bearish consensus, investors will look for signs such as lower content amortization burdens relative to revenue, improved marketing efficiency in Direct-to-Consumer, and steadier monetization within TV Media. A positive surprise against the $8.14 billion revenue forecast, or a less negative EPS outcome than -$0.01, could begin to temper skeptical narratives. However, until there is clear and consistent evidence across multiple quarters, the balance of recent opinions remains aligned with a cautious approach to the stock’s near-term trajectory.

In summary, institutional views in the eligible period skew bearish, with Bernstein’s January 22, 2026 note encapsulating market concerns: earnings headwinds, compressed EBIT, and the need for clearer visibility on margin recovery and streaming unit economics. Paramount Skydance Corp’s February 25, 2026 announcement will be parsed for signs of stabilization beyond revenue—particularly the cadence of operating leverage, the shape of content and marketing spend, and any incremental disclosures that clarify the financial contours of strategic initiatives. A meaningful inflection in adjusted EPS or a moderation of EBIT pressure would serve as the most direct counterpoints to the prevailing bearish stance; absent these, conservative views are likely to persist into the next assessment cycle.