Paramount Skydance reported adjusted EBITDA of US$1.1 billion in Q2 2026, a 27% increase driven by growth in streaming and TV production revenue, the company said today [1, 2, 3]. Total revenue for the quarter reached approximately US$6.9 billion, slightly above expectations and flat compared to last year [1, 2, 3].
Streaming revenue from Paramount's direct-to-consumer services grew 9% year-over-year to US$2.47 billion, helped by Paramount+ adding 2 million subscribers to reach 81.6 million globally [2, 3]. However, traditional TV media revenue, including cable networks such as Nickelodeon and Comedy Central, declined 9% to US$3.13 billion due to ongoing pressures on legacy platforms [1, 2, 3].
Paramount raised its full-year adjusted EBITDA guidance to a range of US$3.8 billion to US$3.9 billion and projects about US$3 billion in annual cost savings related to its 2025 merger with Skydance Media. It also forecasts 2026 total revenue of US$30 billion, representing roughly 4% growth [1, 2, 3]. Despite revenue growth and improved profit margins, net earnings fell to US$41 million (4 cents per share) in the quarter, down from US$57 million a year ago [2, 3].
Paramount continues to pursue its planned US$110 billion acquisition of Warner Bros. Discovery but is facing an antitrust lawsuit filed by 12 US states. Paramount CEO David Ellison said the "claims in pending antitrust litigation do not reflect the realities of today’s highly competitive entertainment marketplace" [1]. Warner Bros. Discovery posted Q2 streaming revenue of over US$3 billion and adjusted EBITDA exceeding US$500 million, but total revenue fell 11% to US$8.72 billion, with net income declining to US$149 million [4].
The deadline for the Warner Bros merger closing has been extended to June 2027. If the transaction is not closed by September 30, 2026, Paramount must pay a quarterly fee of US$650 million to Warner Bros shareholders [1, 3]. Paramount CEO David Ellison outlined plans to merge HBO Max and Paramount+ into a single streaming service should the deal complete, while maintaining that "HBO should stay HBO" [4].
Paramount ended Q2 with 81.6 million Paramount+ subscribers, and combined with HBO Max, the merged entity would have about 200 million streaming subscribers [4]. The antitrust trial is set for March 2027, placing pressure on Paramount to meet merger deadlines or face costly fees [1, 4, 3].
