| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 91 | — | 17.3x | Top tier | |
Growth | 10 | 2.4% | 7.1% | Bottom tier | |
Quality | 27 | — | 4.5% | Bottom tier | |
Safety | 32 | — | 2.6x | Bottom tier | |
Capital Return | 90 | 1.63% | 0.06% | Top tier | |
Momentum | 14 | -39.8% | -1.6% | Bottom tier | |
Sentiment | 63 | — | 3 | Around median |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Skydance Corporation combines the assets of Paramount and Warner Bros. Discovery following completion of the acquisition on 2026-10-06, generating revenue from streaming subscriptions, advertising, television distribution, and the production and licensing of films and series. Its businesses include Paramount+, Pluto, CBS, and the studios, with a plan to combine HBO Max and Paramount+ into a single service over time. Its investment case therefore depends on converting its content library and sports rights into subscriptions and advertising revenue, while managing the decline of traditional television and integrating the merged entity.
Revenue reached $6.9 billion in quarter 2 of fiscal year 2026 ended 2026-06-30, growing 0.9% compared with the same quarter of the previous year, while net income reached $41.0 million and diluted earnings per share were $0.04. The operating margin was 6.9%, compared with 5.8% in quarter 2 of fiscal year 2025. Across business segments, Paramount+ revenue grew 16% and studio revenue grew 16% compared with the same quarter of the previous year, while TV Media revenue continued to decline despite 14% growth in its earnings; management stated that traditional television still represents the majority of revenue and earnings before interest, taxes, depreciation, and amortization.
Revenue for the last 12 months through 2026-06-30 was approximately $29.4 billion, with a net loss of $621.0 million. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months through 2026-06-30 reached $404.0 million. These results precede completion of the Warner Bros. Discovery acquisition on 2026-10-06, so distinguishing between business performance before the transaction and the merged entity's obligations remains essential to understanding its ability to finance the transformation.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-11-03
Quarterly revenue meets guidance of $6.95–7.15 billion
Adjusted earnings before interest, taxes, depreciation, and amortization meet guidance of $875–975 million
The industry-multiple valuation is $7.02, within a range of $2.64–23, valuing the company on sales at a median multiple of 0.3 times across 19 peers. The median analyst target is $6.50, within a range of $6.00–7.00, a low-confidence indicative estimate reflecting expected growth, with analyst targets inherently tending toward optimism. The two reference points are close, but the industry-multiple range is much wider because it reflects differences in peer valuations, while analyst targets are concentrated within a narrow range of expectations. Bernstein cut its target to $6 from $12 on 2026-10-16, adding caution to the interpretation of analyst expectations.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
The company generates revenue from streaming subscriptions, advertising, television distribution, and the production and licensing of films and series, through assets including Paramount+, Pluto, CBS, and the studios. It completed the Warner Bros. Discovery acquisition on 2026-10-06, with a plan to combine HBO Max and Paramount+ into a single service over time. Revenue reached $6.9 billion in quarter 2 of fiscal year 2026 ended 2026-06-30, a period preceding completion of the acquisition. Therefore, that quarter's results do not represent the group's performance after the assets were fully combined.
Paramount+ revenue grew 16% compared with the same quarter of the previous year in quarter 2 of fiscal year 2026 ended 2026-06-30. Approximately one-third of the growth came from subscriber increases and two-thirds from improved average revenue per user, resulting from pricing actions and an improved subscription mix. The platform added two million subscribers during the quarter to reach 81.6 million, supported by Dutton Ranch, UFC, and the World Cup in selected regions. However, on the 2026-08-04 call, management expected subscriber numbers to remain approximately flat in quarter 3 of fiscal year 2026 compared with the previous quarter, making pricing, advertising, and subscriber retention important factors in sustaining growth.
Automated analysis for informational purposes only — not investment advice.
Paramount+ subscriber base remains stable at the reference level of 81.6 million subscribers
The company recorded net income of $41.0 million and an operating margin of 6.9% in quarter 2 of fiscal year 2026 ended 2026-06-30. However, the net loss reached $621.0 million for the last 12 months through 2026-06-30, showing that quarterly profitability has not yet become a consistent pattern. According to EL7 data, operating cash flow reached $650.0 million for the last 12 months through 2026-06-30. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months through 2026-06-30 reached $404.0 million, providing internal financing for the transformation without eliminating the debt burden.
On the 2026-08-04 call, management targeted a savings run rate of $2.7 billion by the end of fiscal year 2026, within a target exceeding $3 billion for integrating Skydance and Paramount. The measures include unifying the technology infrastructure of Paramount+, BET+, and Pluto, and reducing spending on external services, facilities, and procurement. Following completion of the Warner Bros. Discovery acquisition on 2026-10-06, the company targeted annual run-rate savings of at least $6 billion within three years of closing. These targets differ in business scope and timeframe and do not represent cash amounts already fully realized.
According to EL7 data, total debt reached $14.5 billion versus cash and short-term investments of $1.6 billion at the end of quarter 2 of fiscal year 2026 ended 2026-06-30. The comparison excludes long-term marketable securities and also precedes completion of the Warner Bros. Discovery acquisition on 2026-10-06. Diluted shares increased to 1.12 billion in quarter 2 of fiscal year 2026 versus 680.0 million in quarter 2 of fiscal year 2025, an increase of 64.7%. This means operating improvements must serve financing obligations and a broader ownership base before their impact becomes evident in earnings per share.