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PSKY Gears Up to Report Q1 Earnings: What's in Store for the Stock?

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Key Takeaways

  • PSKY expects Q1 revenues of $7.15-$7.35B, reflecting a 0.8% increase at the midpoint.
  • Streaming and UFC partnership likely boosted Paramount engagement and subscriber trends.
  • TV Media declines, debt costs, and WBD bid expenses are expected to pressure profitability.

Paramount Skydance Corporation (PSKY - Free Report) is scheduled to report its first-quarter 2026 results on May 4.

PSKY expects first-quarter revenues in the range of $7.15-$7.35 billion, up 0.8% at midpoint.

The Zacks Consensus Estimate for PSKY’s first-quarter revenues is currently pegged at $7.25 billion, indicating a 0.79% increase from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at 16 cents per share, down 44.83% year over year. The estimate has been revised downwards by 5 cents over the past 30 days.

PSKY surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters, while missing once, with an average negative surprise of 160.13%.

Let us see how things are shaping up for the upcoming announcement.

Factors to Consider

Paramount Skydance is expected to have entered the first quarter of 2026 with continued momentum in its direct-to-consumer business. Streaming is likely to have remained the primary growth driver, supported by improving subscriber trends, price increases realized early in the period and rising engagement. The UFC partnership, launched on Paramount+ in January, is likely to have supported subscriber acquisition and engagement, with UFC 326 in early March expected to have sustained viewership. Live programmatic advertising for UFC events is also expected to have contributed to ad revenue improvement, though Pluto TV is expected to have continued facing monetization headwinds weighing on non-Paramount+ DTC revenues.

Content remained supportive, with Tracker, Sheriff Country and 60 Minutes anchoring CBS viewership, while Paramount+ engagement was likely aided by franchise titles including Landman, Tulsa King and Star Trek: Strange New Worlds, alongside new premieres Marshals and The Madison.

The to-be-reported quarter is expected to have reflected pressure across several fronts. TV Media likely remained weighed down by affiliate revenue declines from pay TV subscriber erosion and softening linear advertising demand. Filmed Entertainment is expected to have faced a difficult comparison against the theatrical tailwinds of Sonic the Hedgehog 3 and Gladiator II in the prior year period, though Scream's late February release is likely to have provided modest support. The planned exit of international hard bundle subscribers is expected to have resulted in flattish sequential subscriber additions despite healthy underlying growth. Transformation charges and interest expense on gross are expected to have weighed on profitability and free cash flow conversion, while the Chilevisión divestiture removed an associated revenue contribution.

The first quarter's dominant strategic development was the progression of PSKY's cash pursuit of Warner Bros. Discovery. The WBD board's determination in late February that PSKY's revised proposal constituted a superior proposal is likely to have added material complexity, with associated legal, advisory and financing costs expected to have weighed further on near-term profitability.

What Our Model Says for PSKY

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the exact case here.

PSKY currently has an Earnings ESP of 11.63%  and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

Reddit (RDDT - Free Report) has an Earnings ESP of 3.54% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Reddit is slated to report first-quarter 2026 results on April 30. The Zacks Consensus Estimate for Reddit’s first-quarter 2026 earnings is pegged at 62 cents per share, up by 3 cents over the past 60 days, indicating a rise of 376.9% from the year-ago quarter’s reported figure.

Arista Networks (ANET - Free Report) has an Earnings ESP of 2.79% and carries a Zacks Rank #2 at present.

Arista Networks is set to report first-quarter 2026 results on May 5. The Zacks Consensus Estimate for Arista Networks’ first-quarter 2026 earnings is pegged at 81 cents per share, unchanged over the past 60 days, indicating a rise of 24.6% from the year-ago quarter’s reported figure.

Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of 0.78% and carries a Zacks Rank #2 at present.

It is set to report first-quarter 2026 results on April 30. The Zacks Consensus Estimate for Monolithic Power Systems’ first-quarter earnings is pegged at $4.89 per share, unchanged over the past 60 days, indicating a rise of 21% from the year-ago quarter’s reported figure.

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