Paramount (PSKY) shares rose as much as 4% in after-hours trading after the company reported higher first-quarter revenue that beat Wall Street expectations, driven by gains in streaming and studios that offset a decline in its TV business.
Revenue climbed 2% to $7.35 billion, surpassing analysts’ estimates of $7.28 billion, according to FactSet. The company posted net income of $168 million, or 15 cents per share, compared with $152 million, or 22 cents per share, a year earlier. Adjusted earnings per share came in at 23 cents, well above the consensus forecast of 15 cents.
Streaming and studio growth fueled the results. Paramount+ added subscribers and posted 11% higher direct-to-consumer revenue of $2.4 billion. The service ended the quarter with 79.6 million subscribers, up 2% year-over-year, powered by hits including Taylor Sheridan’s “Landman,” “The Madison,” and “Marshals.”
Television revenue, however, fell 6% to $3.67 billion due to lower advertising and affiliate sales.
The company is on track to close its $81 billion acquisition of Warner Bros. Discovery by the end of the third quarter, pending regulatory approval. Warner shareholders approved the deal last month.
In a letter to shareholders, Paramount CEO David Ellison reaffirmed plans to release a combined 30 theatrical films annually after the merger.
Paramount, which owns CBS, Comedy Central, Nickelodeon, and its film studio, continues to see momentum in streaming and content production as it prepares to combine with the owner of HBO, Max, and CNN.
The company reiterated its full-year 2026 guidance for $30 billion in revenue and $3.8 billion in adjusted EBITDA. It expects revenue to be weighted toward the second half of the year, with profitability slightly skewed toward the first half.