Paramount Skydance Q1 2026: EBITDA Increases 69% Despite 21% Drop in EPS

Paramount Skydance Corporation, known by its stock ticker PSKY, has recently shared its Q1 2026 earnings report, painting a picture of growth and recovery for the media giant. Let’s break down the key stats that tell the story of PSKY’s performance in the first quarter of the year.

In terms of revenue, PSKY reported $7.3 billion in Q1 2026, showing a 2% increase compared to the same period last year. While earnings per share (EPS) dipped by 21% year over year to $0.23, it still managed to surpass internal expectations. The company’s EBITDA, a measure of operational profitability, saw a substantial 69% jump to $1.2 billion, with the EBITDA margin expanding to 16% from 10% in Q1 2025.

One of the standout performers for PSKY in Q1 was its streaming service Paramount+. CFO Dennis Cinelli highlighted that Paramount+ experienced a 17% year-over-year revenue growth, driven by both a price increase in January and an improvement in the subscriber mix. Approximately 2 million underlying subscribers were added during the quarter, showcasing strong organic demand. The studio revenue also saw an 11% increase, boosted by the success of the theatrical release of “Scream 7” and the expansion of the third-party TV studio.

CEO David Ellison shared that Paramount+ saw significant engagement from UFC content, with over 10 million households tuning in for over 100 million viewing hours in Q1. Notably, new UFC subscribers were on average 15 years younger than the broader viewer base of Paramount+, indicating a potential for reaching a diverse audience.

Looking at the financials, it’s clear that PSKY is on a path of recovery. After facing revenue pressure in previous quarters, the company’s top-line numbers are stabilizing, supported by operational efficiencies. Operating income reached $616 million in Q1 2026 at an 8% operating margin, showing a positive trend from previous periods.

In terms of valuation, the TIKR model pegs PSKY’s stock at $13.69, suggesting a potential 28% upside from the current price of around $11. While there are challenges ahead, such as net income margin recovery and the successful execution of the Warner Bros. Discovery transaction, the investment case for PSKY looks promising.

In conclusion, Paramount Skydance Corporation’s Q1 performance signals a trajectory of growth and resilience in a competitive media landscape. As always, it’s essential for investors to conduct their own analysis and dive deeper into the numbers to make informed decisions about investing in PSKY.