Pushdown Accounting Impact
Operating income benefited from lower content costs as pushdown accounting reduced programming assets, while amortization of intangibles from the fair value adjustments was recorded.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Paramount Skydance Corporation reported modest revenue growth in Q2 FY2026, as a 30% increase in licensing revenue and gains at Paramount+ were offset by a 9% decline in advertising amid linear TV weakness. Operating income rose 19% as lower content costs from pushdown accounting and cost-savings initiatives more than offset $188 million in transaction-related and restructuring charges. However, net income fell due to higher interest expense and a higher effective tax rate, while the company continued to navigate regulatory and litigation hurdles related to its planned merger with Warner Bros. Discovery.
Revenue
$6.91B
+0.93% YoY
EPS (Diluted)
$0.04
-50.00% YoY
Operating Income
$475M
+19.05% YoY
Source: SEC XBRL
Paramount Skydance (PSKY) reported Q2 FY2026 revenue of $6.91B, up 0.9% year over year. Operating margin was 6.9%, up 1.1 points from 5.8% a year earlier. PSKY's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 0.23 | 0.15 | Beat +51.8% |
| Dec 2025 | -0.12 | -0.01 | Miss -1279.3% |
| Sep 2025 | -0.12 | 0.39 | Miss -131.1% |
| Jun 2025 | 0.46 | 0.37 | Beat +25.7% |
3 reported segments · SEC XBRL
Segment revenue totals $6.92B; with -$3M of reconciling items (corporate, unallocated and eliminations) it ties to the $6.91B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Operating income benefited from lower content costs as pushdown accounting reduced programming assets, while amortization of intangibles from the fair value adjustments was recorded.
Source: 10-Q Item 2 MD&A
Adjusted EBITDA increased 27% to $1,099 million, driven by cost savings from linear programming and the lower content costs resulting from the pushdown basis.
Source: 10-Q Item 2 MD&A
Advertising revenues fell 9% due to weakness in the linear advertising market and a negative 6% impact from the comparison against CBS's broadcast of the NCAA Tournament in the prior year.
Source: 10-Q Item 2 MD&A
The merger received European Commission approval in July 2026 but faces a multi-state antitrust lawsuit, delaying closing until the earlier of five days after a court ruling or June 1, 2027.
Source: 10-Q Item 2 MD&A
The company incurred $153 million in transaction-related items, primarily legal and advisory fees associated with the planned Warner Bros. Discovery merger and related integration.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 5 high, 0 medium, 0 low
The proposed merger may cause disruptions to Paramount's business and commercial relationships, including loss of employees and creative talent, and diversion of management attention away from day-to-day operations.
Source: 10-Q Item 1A Risk Factors
If the WBD merger is not completed, Paramount could be required to pay a $7.0 billion termination fee, its stock price could decline significantly, and it would remain exposed to linear TV declines without merger synergies.
Source: 10-Q Item 1A Risk Factors
The merger requires regulatory approvals which may not be obtained or may be obtained with burdensome conditions, such as divestitures, potentially reducing anticipated benefits or delaying closing.
Source: 10-Q Item 1A Risk Factors
Litigation, including a multi-state antitrust lawsuit filed by twelve states, could prevent or delay the merger closing, result in damages, or impose conditions that adversely affect the combined business.
Source: 10-Q Item 1A Risk Factors
Paramount will incur substantial indebtedness to finance the merger, with an estimated $86.3 billion of total debt after closing, which could strain cash flows, limit financial flexibility, and lead to credit rating downgrades.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.91 $B | 6.85 $B | +0.93% |
Operating Income $M | 475.00 $M | 399.00 $M | +19.05% |
Net Income $M | 41.00 $M | 57.00 $M | -28.07% |
EPS (Basic) $ | 0.04 $ | 0.08 $ | -50.00% |
EPS (Diluted) $ | 0.04 $ | 0.08 $ | -50.00% |
SG&A Expense $B | 1.44 $B | 1.40 $B | +3.00% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
PSKY delivered modest Q1 FY2026 revenue growth of 2.2% to $7.35B, with operating income rising 12.0% to $616M driven by an 8.6% reduction in SG&A expenses, though EPS declined 34.8% due to a higher share count.
PSKY reported a dramatic revenue decline of 58.0% to $12.27B in FY2025, yet significantly narrowed its net loss to $586M from $6.19B the prior year, reflecting major restructuring and cost reduction efforts.
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