Paramount Skydance (PSKY) Q2 2026 earnings summary

Executive summary

• Achieved strong progress on strategic priorities, including storytelling investment, global DTC scaling, and enterprise efficiency, while transitioning to a new reporting structure post-Skydance transaction in August 2025.

• Revenues for Q2 2026 rose 1% year-over-year to $6.91B, driven by Paramount+ and higher licensing, offset by declines in linear networks and theatrical releases.

• Adjusted EBITDA grew 27% to $1.10B, reflecting lower content costs and cost savings, partially offset by lower linear network revenues.

• Paramount+ reached 81.6 million subscribers, with best-ever retention and double-digit engagement growth.

• The company completed the Skydance transaction and is progressing toward the Warner Bros. Discovery merger, which is delayed due to ongoing litigation and regulatory review.

Financial highlights

• Q2 2026 GAAP revenue: $6.91B (+1% YoY); operating income: $475M (+19% YoY); net earnings attributable to Parent: $41M (-28% YoY).

• Adjusted EBITDA for Q2 2026: $1.10B (+27% YoY); adjusted net earnings: $205M.

• Adjusted diluted EPS for Q2 2026: $0.18; Q2 2026 diluted EPS: $0.04 (-50% YoY).

• Free cash flow for Q2 2026: $101M; cash and cash equivalents: $1.63B at June 30, 2026.

• Net debt as of Q2 2026: $13.5B; total debt: $15.16B at June 30, 2026.

Outlook and guidance

• Full-year adjusted EBITDA outlook raised to $3.8B–$3.9B; $30B revenue outlook maintained.

• Q3 revenue guidance: $6.95B–$7.15B (4–7% growth YoY); adjusted EBITDA $875M–$975M.

• Paramount+ subscribers expected to be flat quarter-on-quarter in Q3.

• Management anticipates realizing cost synergies and operational efficiencies post-merger, but integration risks remain.

• Free cash flow conversion targeted to improve further over the midterm.