Paramount beat Wall Street estimates in its Q1 earnings on Monday as overall revenues climbed 2% year-on-year to $7.3bn and executives said they had made “significant progress” towards closing the Warner Bros Discovery (WBD) merger by the third quarter.
Profit for the period ended March 31 2026 reached $168m or 15 cents per share. Paramount+ added around 700,000 subscribers and gained 2% year-on-year to stand at 79.6m, while revenues surged 17% to $1.9bn. Landman from the Taylor Sheridan universe is the streamer’s most-watched show ever. Revenues at the overall streaming sector including Pluto TV and BET+ increased by 11% to $2.4bn.
The streaming businesses will be modernised and this summer Pluto TV will get what the company said in its shareholder letter will be its most significant update in a decade as the company addresses user interface and advertiser appeal. In programming, there which will be a focus on nostalgia-driven film and television that has engaged users.
The studios segment reported revenues of $1.3bn, up 11% on Q1 2025. The theatrical highlight was Scream 7, which is the highest-grossing entry in the 30-year horror franchise and stands at $207.6m worldwide and $121.9m in North America, where the film earned $119.3m in the quarter.
Among anticipated slate highlights for Q2 are James Cameron’s Billie Eilish – Hit Me Hard And Soft: The Tour (Live In 3D) on May 8; André Ovredal’s supernatural thriller Passengers on May 22 on Memorial Day weekend; Scary Movie on June 5; and jackass: best and last on June 26.
The TV media business is in secular decline across the media world and Paramount’s fell by 6% year-on-year to $3.7bn.
The letter reiterated the company’s commitment to what CEO David Ellison told CinemaCon attendees last month would be 30 annual theatrical releases with a minimum 45-day exclusive window from a combined Paramount and WBD – so long as the transaction satisfies regulators in the US, Europe, and UK. WBD shareholders approved the merger last month.
Executives said CBS currently holds 13 of the top 20 primetime series including the top four new series, Marshals, Sheriff County, CIA, and Boston Blue.
Paramount remains on track to deliver more than $2.5bn in “efficiencies” by year’s end and more than $3bn through 2027. Should the merger go through it is expected to lead to redundancies stemming from duplicated roles across numerous divisions.
Executives said they have syndicated a piece of the new equity to strategic investors, secured $10bn in debt financing, and syndicated the remaining $49bn in bridge financing to 18 global institutions. The company reaffirmed its $30bn revenue forecast or 4% year-on-year growth for the year.
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