Paramount Skydance (PSKY) shares rose about 5% in premarket trading on Tuesday as investors digested its third quarter earnings.
Quarterly revenue came in just below Wall Street expectations in the results, released in after hours on Monday. But the company struck an upbeat tone for what lies ahead, raising its cost-savings target, projecting stronger streaming profits, and signaling upcoming price hikes for Paramount+.
Revenue totaled $6.7 billion for the quarter ended in September, slightly shy of analysts’ $7 billion estimate, in the company’s first earnings release since completing its merger with Skydance in August.
Paramount Skydance CEO David Ellison said the company now expects $30 billion in total revenue and $3.5 billion in adjusted OIBDA for 2026, driven by a “healthy acceleration” in streaming. The company also expects Paramount+ to be profitable this year and to grow that profitability in 2026.
Direct-to-consumer revenue jumped 17% year over year, while weakness in TV Media offset those gains. Paramount+ revenue climbed 24%, with total subscribers reaching 79.1 million.
Across the full quarter, Paramount reported $324 million in operating income and a net loss of about $257 million, though pre- and post-merger results aren’t directly comparable.
Ellison said the newly combined company has taken “meaningful steps” to streamline operations, including a reduction of 1,000 employees from its workforce and plans to cut an additional 1,600 employees.
Paramount also raised its efficiency-savings target to $3 billion, up from $2 billion previously.
On top of its efficiency goals, the company also plans to raise prices for Paramount+ early next year in the US, part of a broader push to boost profitability and fund new content and technology investments.
The company recently announced upcoming price increases in both Canada and Australia.