How does para. skydance make money?

para. skydance generates $12.3B in annual revenue (annual revenue · their business grew -26.2% last year).

What is PSKY's XVARY composite score?

para. skydance (PSKY) has an XVARY composite score of 55/100, rated below average. This combines growth, value, risk, and momentum factors.

PSKY — para. skydance stock analysis

Start here if you're new

what it is

It owns TV networks, movie studios, and streaming apps like Paramount+ and Pluto TV.

how it gets paid

Last year Para. Skydance made $12.3B in revenue. TV Media was the main engine at $7.1B, or 58% of sales.

why growth slowed
Revenue fell 26.2% last year. Tv media revenue may face moderate declines due to affiliate and advertising headwinds.

what just happened

One headline quarter: revenue ~$4.1B (down ~39% vs. prior year in the cited window) and roughly breakeven EPS—different from the ~$12.3B annual bridge in the table when periods do not line up.

At a glance

B+ balance sheet — decent shape, but not bulletproof

10.1x trailing p/e — the market's not buying it — or you found a deal

2.5% dividend yield — cash in your pocket every quarter

8.5% return on capital — nothing to write home about

$2.00 fy2028 eps est

xvary composite: 55/100 — below average

What they do

It owns TV networks, movie studios, and streaming apps like Paramount+ and Pluto TV.

The old business still pays the bills. TV Media is 58% of stub-period revenue, while Direct-to-Consumer is 31%. That means your streaming upside still rides on a legacy cash machine, and leaving that bundle behind is painfully slow.

consumer large-cap media streaming turnaround

How they make money

$12.3B annual revenue · their business grew -26.2% last year

TV Media

$7.1B

Direct-to-Consumer

$3.8B

Filmed Entertainment

$1.4B

The products that matter

streaming subscription business

Paramount+

tied to the $30B 2026 revenue plan

management is asking this business to help deliver a $30B 2026 revenue plan through subscriber growth, price increases, and live sports. if that math slips, the rest of the story gets harder fast.

growth bet

broadcast and cable networks

TV Networks

~$7.1B TV media (FY bridge)

Align product cards to the rev-rows (~$7.1B TV media on ~$12.3B)—ignore stray multi-billion “this quarter” lines that do not match the same stub.

legacy cash flow

film studio and content slate

Film Studio

part of the $3.5B adjusted oibda plan

the data here is thin, and that matters. what you do have is filmed entertainment folded into management's $3.5B adjusted oibda plan — a profit measure that excludes some deal and accounting noise.

execution watch

Key numbers

$20

18-mo target

sees $7.85 of upside from $12.15, so the market is not pricing in the full comeback.

$13.3B

long-term debt

That is 51% of capital, so leverage is doing a lot of the heavy lifting here.

10.1x

trailing p/e

You pay 10.1 times past earnings for a business with a -0.8% operating margin.

$33B

FY2028 revenue

That is about 2.7x the latest $12.3B annual revenue, so the model assumes a much larger company.

Financial health

B+

strength

balance sheet grade B+ — solid but not elite
risk rank 3 — safer than 50% of stocks
long-term debt $13.3B (51% of capital)
net profit margin 6.6% — keeps 7 cents of every dollar in revenue
return on equity 14% — $0.14 profit for every $1 investors have put in

B+ — functional but not a standout on the balance sheet.

Total return vs. market

You invested $10,000 in PSKY 3 years ago → it's now worth $6,350.

The index would have given you $14,770.

same period. same starting point. PSKY trailed the market by $8,420.

source: institutional data · total return

What just happened

missed estimates

Revenue fell 39% to $4.1B, and EPS was -$0.01.

The quarter was smaller than the year before, and the margin picture is still rough. One strip shows operating margin around -0.8%, so scale is not yet turning into clean profit.

$4.1B

revenue

-$0.01

eps

-0.8%

operating margin

the number that mattered

The $4.1B quarter matters because it was down 39% vs. prior year. That is a shrinking top line, not a noisy one.

paramount skydance is making its debut in the institutional data.
the company was formed after the merger of paramount global and skydance media.

for 2026, the newly formed paramount skydance is expected to see revenue of $30 billion, driven primarily by accelerated growth in its direct-to-consumer segment. paramount+ average revenue per user (arpu) should benefit from upcoming price increases and optimized subscriber mix, while the addition of live sports (ufc, zuffa boxing) and originals will strengthen engagement and retention.
tv media revenue may face moderate declines due to affiliate and advertising headwinds, partially offset by political spend and divestitures.
filmed entertainment will return to full-year profitability as the film slate is recalibrated.

adjusted oibda (operating income before depreciation and amortization) is projected at $3.5 billion, supported by $3 billion in efficiency gains, targeted content, and technology investments. not long after the ink dried on the merger that created the new media giant, the company moved to make a bold acquisition.
in december 2025, netflix agreed to acquire the studio and streaming assets of warner bros.

discovery, including warner bros. studios, hbo, and hbo max, in a cash-and-stock deal valued at about $82.7 billion ($72 billion equity), with closing expected in 18 months after wbd spins off its cable networks. however, soon after paramount skydance launched a hostile takeover bid for all of wbd at approximately $108 billion, arguing its all-cash offer was superior.

source: company earnings report, 2026

What could go wrong

the #1 risk is financing and closing the $108B warner bros. discovery bid.

!

high

financing a giant deal from a much smaller equity base

the contrast is the risk: $13B market cap, $108B bid. if financing costs rise or terms get worse, the stock gets repriced long before savings show up.

market-cap mismatch is the problem, not a footnote

!

high

integration on top of integration

the company was just formed from Paramount and Skydance. adding another large integration while promising $3B in savings raises the odds that execution slips before the savings arrive.

$3B in planned savings matters only if the systems and strategy can be combined

∘

med

the old cash engine is shrinking

gross margin is 28.9%, net margin is 6.6%, and TV Networks & Film fell 26.2% in the latest period shown. that leaves less cash to fund the streaming rebuild.

declining legacy profit makes the streaming bet more fragile

∘

med

institutions are not acting convinced

institutions were net sellers for 3 straight quarters, with 228 buyers versus 369 sellers in 3q2025. when the holder base keeps trimming before the hardest part of the story begins, you should notice.

weak sponsorship can keep the multiple cheap for longer than you expect

one decision now sits against a $13B market cap, $13.3B of long-term debt, and a business earning 6.6% net margins.

source: institutional data · regulatory filings · risk analysis

Pay attention to

deal risk

warner bros. discovery financing and regulatory path

the market does not need more headlines here. it needs proof that a $108B bid can be financed and approved without breaking the capital structure.

numbers

$30B revenue and $3.8B adjusted EBIT for 2026

those are the promises on the page. if management misses them before any larger deal closes, the savings story gets harder to defend.

business mix

whether streaming can outrun linear decline

TV Networks & Film fell 26.2% in the latest period shown. direct-to-consumer does not just need to grow — it needs to matter.

calendar

the next earnings report

you want two answers next time: is profit stabilizing after the EPS miss, and is management still talking with confidence about that $3.8B adjusted EBIT path.

Analyst rankings

long-term target spread

$16–$25

analyst targets span $16 to $25 over 3–5 years. in human-speak, they see upside only if the integration story stops getting bigger and starts getting cleaner.

earnings expectation

$2.00

FY2028 EPS estimate is $2.00. that is the market's future-profit placeholder, and it assumes savings show up instead of staying in the slide deck.

valuation read

10.1x

a 10.1x trailing P/E says the stock is inexpensive on paper. it also says investors do not fully trust the paper.

source: institutional data

Institutional activity

institutions have been net selling for 3 consecutive quarters — 228 buyers vs. 369 sellers in 3q2025. total institutional holdings: 0.3B shares. net selling for 3 quarters.

source: institutional data · 1q2025-3q2025

source: institutional data

Price targets

3-5 year target range

$16 $25

$12 current price

$20 target midpoint · +69% from current · 3-5yr high: $25 (+105% · 21% ann'l return)

source: institutional data · analyst targets

The deep dive

PSKY

xvary deep dive

psky

the full analysis is in the works.

what you'll get

dcf valuation model

bull / base / bear scenarios

competitive moat breakdown

quarterly earnings tracker

operating model projections

risk matrix with kill criteria

original price target + conviction

updated with every earnings

free · no spam · you'll be first to read it

psky

Get this snapshot in your inbox

Want the deeper analysis?