Paramount Skydance Corp. Reports Third‑Quarter Results, Signals Future Growth
Paramount Skydance Corp. (NASDAQ: PSKY) released its third‑quarter earnings on Monday, November 10, 2025, and the market reacted positively. The media conglomerate, which emerged from the merger of Paramount Global and Skydance Media, reported pro‑forma sales of $6.71 billion—flat year‑over‑year but falling short of the $6.99 billion consensus estimate.
Despite the revenue miss, the company’s guidance lifted the stock. Shares surged 6.6 % in after‑hours trading, driven by a consensus that the combined entity is on track to deliver an additional $1 billion in merger‑savings. Management highlighted disciplined cost management, citing a planned $300 million reduction in operating expenses over the next 12 months.
Key Highlights
| Metric | Third‑Quarter 2025 | YoY | Consensus | Commentary |
|---|---|---|---|---|
| Revenue | $6.71 B | Flat | $6.99 B | Missed expectation but consistent with 2024 trends |
| Earnings per Share | $0.28 | N/A | $0.30 | Slightly below consensus |
| Operating Margin | 12.3 % | ↑ 0.5 pp | 12.0 % | Improved margin reflects cost cuts |
| Merger‑Savings Guidance | +$1 B | – | – | Indicates strong integration execution |
The company’s price‑to‑earnings ratio remains heavily negative at ‑441.96, reflecting the broader valuation pressure in the communication‑services sector and the company’s high debt load. Nonetheless, the market cap of $16.22 B and a 52‑week range between $9.95 and $20.86 suggest that investors are pricing in a long‑term upside once the merger synergies materialise.
Paramount+ Pricing Strategy
During an investor call on the same day, Paramount Skydance announced that Paramount+ will raise its subscription price in 2026. While the exact premium has not been disclosed, the move is framed as a means to support the new content pipeline and to offset the cost of the merger. Analysts note that the price increase will likely be modest, aligning with the average inflation rate of 2.5 % in the U.S. consumer market.
The price hike is expected to have a neutral short‑term impact on subscriber growth but should strengthen the company’s cash‑flow profile, reinforcing its ability to fund future acquisitions and original content development.
Investor Sentiment
- After‑hours trading saw PSKY rise 6.6 %, reflecting confidence in the company’s guidance.
- Volume during the trading session was up 15 %, indicating heightened interest from both retail and institutional investors.
- Analyst coverage remains mixed; while some maintain a “Buy” rating based on the merger’s potential, others advise caution given the current P/E distortion and the broader market’s concerns over technology valuations.
Forward‑Looking Perspective
The merger’s integration is progressing at a pace that exceeds market expectations, with a clear focus on cost optimisation and revenue diversification. Paramount Skydance’s strategic emphasis on streaming (Paramount+) and high‑budget film production positions it well against competitors such as Disney+ and Netflix. The forthcoming 2026 pricing adjustment will be a critical test of the company’s ability to monetize its expanded content library without eroding subscriber numbers.
For investors, the current valuation offers a compelling entry point if the company can close the revenue gap and deliver on its cost‑saving targets. The market’s reaction to the third‑quarter results and the announcement of the Paramount+ price increase suggests that the stock may continue to rally as the merger delivers tangible value.
