Skydance stock weighs Q3 growth against Warner Bros. film setback

Published on 11/10/2026 at 14:49 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Skydance stock faces a mixed first report after the Warner Bros. Discovery deal. Streaming growth and merger savings counter a weaker Warner Bros. film slate.

Results Reset Merger Expectations

Third-quarter revenue rose 5% to $7.025 billion before the Warner Bros. Discovery acquisition closed.
Paramount+ revenue increased 21%, while TV Media revenue declined 7% year over year.
Management targets at least $6 billion in annual run-rate synergies within three years and plans a combined HBO Max and Paramount+ offer in early 2027.
The Warner Bros. film slate is expected to reduce fourth-quarter profit by up to $200 million versus prior expectations.

Paramount Skydance, US69932A2042, Illustration mit AI erstellt.

Skydance reported third-quarter results on Monday, November 9, for the period ended September 30, before the October 6 completion of its Warner Bros. Discovery acquisition. The company said in its financial release that the figures therefore cover Paramount Skydance without Warner Bros. Discovery.

Skydance stock traded at 7.58 euros on Lang & Schwarz at 14:34 CET on Tuesday, November 10.

Growth Remains Uneven Across Segments

Revenue rose 5% year over year to $7.025 billion, according to the shareholder letter published through MarketScreener. Net earnings attributable to the parent reached $73 million, while adjusted EBITDA came to $1.0 billion, equal to a 14.2% margin. Operating income was $368 million and included $187 million of restructuring and transaction-related costs.

The strongest operating momentum came from direct-to-consumer activities. Paramount+ revenue increased 21% to $2.134 billion, with subscribers reaching 82.2 million and average revenue per user rising approximately 14%. Direct-to-consumer revenue grew 11% to $2.5 billion, although planned programming investment limited the segment's adjusted EBITDA margin to 9.0%.

Studios revenue advanced 23% to $1.5 billion, helped by secondary-market licensing and production for third parties. TV Media moved in the opposite direction: revenue declined 7% to $3.0 billion, advertising fell 8% and affiliate revenue dropped 5% as traditional pay-TV subscriber losses continued. Higher political advertising provided some support.

Merger Benefits Meet Near-Term Risks

Management is targeting at least $6 billion in annual run-rate synergies within three years of the Warner Bros. Discovery transaction. More than 20 workstreams are under way across corporate overhead, marketing, technology and procurement. The company expects to reduce net leverage to 3.0 times by the end of 2029 and is targeting more than $10 billion in free cash flow by 2030.

The near-term outlook is less favorable for the studios division. Skydance said the Warner Bros. film slate has underperformed, with a potential fourth-quarter profit impact of up to $200 million versus earlier expectations. The company still expects the Paramount theatrical slate to perform well and remains on track for the high end of its previous 2026 standalone profitability outlook of $3.9 billion.

Skydance plans to offer HBO Max and Paramount+ in a single bundle in early 2027. The combined company will report consolidated results from the fourth quarter, giving investors their first full-period view of the acquired assets. Management plans to provide full-year 2027 guidance with the fourth-quarter results and hold an investor day in the first half of 2027.