Skydance Media announced that its third-quarter results were marked by a return to profitability in the Paramount division, which generated a profit of $73 million. This represents a significant turnaround from the loss reported during the same period in the previous year. However, the financial figures do not yet reflect the performance of the newly acquired Warner Bros. Discovery assets, as the merger was finalized in October, after the fiscal quarter had already concluded.
The company, which now owns major brands including CBS, CNN, and the Paramount and Warner Bros. film studios, reported a net income of six cents per share. When adjusted for pre-tax expenses and non-recurring costs, the adjusted earnings per share stood at 45 cents. Total revenue for the period reached $7.03 billion, marking a five percent increase compared to the year-earlier quarter.
Despite the overall growth, Skydance’s largest operation, the traditional television division, saw a decline in revenue. This segment dropped by seven percent to reach $3 billion. Advertising revenue within this division fell by eight percent, a trend attributed partly to the sale of Telefe and Chilevision in October 2025 and January 2026, respectively. Additionally, distribution revenue decreased by five percent due to the ongoing erosion of subscriber bases.
In contrast, the direct-to-consumer operations experienced strong growth, with revenue rising 11 percent to $2.5 billion. The company highlighted accelerating revenue growth for Paramount+, which increased by 21 percent year-over-year. Subscriber numbers for the service also grew by approximately six percent during the period.
The studio segment was a major contributor to the positive results, with revenue increasing 23 percent to $1.5 billion. This growth was driven largely by licensing deals and content produced for third parties, indicating a robust performance in the film and television production sectors.
In a letter to shareholders, company leadership noted that the Warner Bros. studio is not currently performing as strongly as its Paramount counterpart. The executives stated that they expect the Warner Bros. film slate in the fourth quarter to underperform. Conversely, Paramount Pictures is described as continuing to perform well, with plans to double its output in 2026 to include 15 releases.
Looking ahead, Skydance expressed confidence in its ability to reduce costs while simultaneously investing in future growth. The company maintains its expectation of achieving at least $6 billion in run-rate synergies, net of reinvestment, within three years. Executives noted that by combining two global streaming services, two film and television studio groups, two television portfolios, and overlapping corporate functions, they aim to reduce duplicative spend across an expense base exceeding $50 billion.
The company also announced a change in its reporting practices, following the lead of competitors such as Netflix and Disney. Skydance will cease reporting quarterly streaming subscriber counts starting with its fourth-quarter report early next year. Currently, the combined global subscriber base for Paramount+ and HBO Max stands at approximately 203 million.
David Ellison, Skydance’s chairman and CEO, and Ynon Kreiz, co-CEO, emphasized the scale of the company’s content investment in their shareholder letter. They described the budget for content spending as industry-leading, having topped $30 billion. The leaders viewed content not just as an expense but as a strategic investment in building valuable, long-term assets for the company.
Ellison and Kreiz wrote that the company starts from a strong base of annual content spend and a deep library built over more than 200 years of combined storytelling. They stated that the reach of their combined platforms across streaming, broadcast, and cable allows each title to work harder for the business. As a unified entity, the company aims to make smarter choices regarding the distribution and monetization of its slate.
