Paramount+ Subscriber Growth and Revenue Rise Amid Legal Delays in Warner Bros Deal
Paramount Skydance (PSKY) has seen its stock decline by 42% over the past year, trading significantly below its 52-week high. However, Paramount+, the streaming service under PSKY, is showing signs of growth with subscriber additions nearly doubling between Q1 and Q2 of 2026 to around four million per quarter. Management attributes this increase to content like Dutton Ranch and live sports events such as UFC and the World Cup. Despite these gains in Paramount+, most company revenue still comes from its linear business, not streaming. The firm has raised its full-year adjusted EBITDA outlook due to strong Q2 results and cost savings initiatives expected to exceed $2.7 billion by year-end. However, direct-to-consumer profits are anticipated to decline in the third quarter of 2026 as costs for new content increase. The ongoing legal challenge against Paramount's proposed $110 billion acquisition of Warner Bros Discovery could impact PSKY significantly if it extends beyond September 30, 2026. A delay would trigger a ticking fee of about $650 million per quarter, which is substantial relative to the company’s market value.
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Topics: content strategy Paramount+ stock performance subscriber growth Warner Bros. Discovery deal