Paramount earnings, revenue beat expectations as streaming business offers a boost

May 4, 2026 - 19:27

Paramount Skydance reported first-quarter earnings that topped Wall Street expectations on Thursday, driven by a stronger-than-expected performance from its streaming business. The company added subscribers during the quarter, even as it implemented its first price increase since 2024.

Revenue came in at $7.69 billion, slightly above analyst forecasts, while adjusted earnings per share of 62 cents also beat consensus estimates. The streaming segment, which includes Paramount+ and Pluto TV, saw a 5% increase in subscribers, bringing the total to nearly 72 million worldwide. The company credited the growth to a strong content slate, including the debut of a new "Star Trek" series and the return of "Yellowstone" spinoffs.

The price hike, which took effect in February, lifted average revenue per user by 8% in the U.S., helping to offset a 3% decline in traditional TV advertising revenue. The linear television business continued to face headwinds, with affiliate fees dropping 6% as cord-cutting accelerated. Film studio revenue also slipped 2%, as the theatrical slate lacked a major blockbuster compared to last year's "Mission: Impossible" release.

Paramount Skydance executives said the company remains on track to achieve profitability in its streaming division by the end of 2025. They also noted that the recent merger with Skydance Media has already yielded cost savings of roughly $200 million through shared production and marketing resources. Shares rose 4% in after-hours trading following the report.