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Paramount Skydance projected first-quarter 2026 revenue below Wall Street expectations, citing continued weakness in its legacy TV business as cord-cutting accelerates across the media industry. The company expects revenue between $7.15 billion and $7.35 billion for the quarter, slightly under analyst estimates of $7.36 billion, according to LSEG data.
The media giant continues to navigate structural declines in linear television, where falling ratings and softer advertising demand are pressuring results. In the fourth quarter, revenue in Paramount’s TV Media segment fell 5% year over year to $4.71 billion, impacted by weaker ad sales and lower affiliate fees. The company acknowledged that it anticipates further declines in its TV Media unit in 2026, largely in line with broader pay-TV industry headwinds.
Despite these challenges, Paramount is betting heavily on streaming growth to offset the downturn in traditional broadcasting. Paramount+ ended the year with 78.9 million paid subscribers, and management expects stronger subscriber growth in 2026, supported by price increases and new content additions, including exclusive Ultimate Fighting Championship programming. Analysts note that the company’s long-term performance hinges on whether streaming momentum can outpace the structural erosion of linear TV revenue.
Paramount also highlighted strength in its filmed entertainment division, where fourth-quarter revenue rose 16%, driven primarily by the consolidation of Skydance licensing. Total company revenue for the fourth quarter reached $8.15 billion, narrowly exceeding analyst projections of $8.14 billion.
Meanwhile, Paramount’s leadership, under CEO David Ellison, described its $31-per-share bid for Warner Bros. Discovery as an “accelerant” to strategic goals. Warner Bros.’ board is reviewing the offer against Netflix’s $27.75-per-share proposal for its streaming and studio assets. The bidding war underscores the value of Warner Bros.’ film and television library, which includes blockbuster franchises such as Harry Potter and Game of Thrones.
As competition intensifies across the streaming industry, Paramount Skydance’s ability to drive subscriber growth and stabilize revenue will remain closely watched by investors.
