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Paramount Stock Climbs as Forecast Beats Estimates

Nov 10, 2025 14:43:00 -0500 by Angela Palumbo | #Media #Earnings Report

Paramount reported third-quarter earnings on Monday. (Ethan Swope/Bloomberg)

Key Points

Paramount Skydance stock was rising after the entertainment media company provided a better-than-expected outlook.

Paramount said it expects fourth-quarter revenue to be between $8.1 billion and $8.3 billion, which is above Wall Street’s estimates of $7.84 billion, according to FactSet. Revenue for 2026 is expected to be $30 billion, which is higher than analysts’ expectations for $29.6 billion.

Paramount also announced that it plans to increase prices for its Paramount+ streaming service in the U.S. in the first quarter of 2026 to fuel “reinvestment in the user experience.” This price increase is expected to help Paramount’s revenue increase in 2026, the company said.

Between Aug. 7 and Sept. 30, Paramount+ had 79.1 million subscribers. Paramount also said that, starting in the fourth quarter, it will count only paid Paramount+ subscribers in its reported figures and will exclude free trials. At the end of the third quarter, free-trial subscribers totaled 1.2 million.

The company also said it plans to bring down costs and reinvest in the business, and one way by doing that is by cutting jobs. Paramount said it implemented a significant workforce reduction that impacted about 1,000 employees at the end of October. The cuts aren’t over though, as Paramount said that it plans to slash about 1,600 more jobs.

Shares were up 4.6% to $15.95 in after-hours trading following the results.

The results come at a very busy time for the entertainment company as it works to expand itself.

Investors have been paying close attention to reports that Paramount is looking to buy Warner Bros. However, several media outlets have reported that Warner Bros. has rejected takeover offers from Paramount.

When asked about the merger reports, management said on the earnings call Monday that the company can’t comment on rumors or speculation. However, CEO David Ellison said “we’re fortunate that we have the balance sheet to be able to be opportunistic when we think that M&A will accelerate our goals. But we’re also long term disciplined owner operators. So from that standpoint, we’ll always approach things through the lens of how we maximize value for shareholders.”

Warner Bros. announced earlier this year that it was looking into breaking up into two publicly-listed entertainment companies by 2026—with one company becoming home to its movie studios and HBO Max streaming platform, while the other would include cable channels such as CNN. However, the company also said in October that it initiated a review of strategic alternatives in light of interest it has received from multiple parties.

When reporting earnings on Nov. 6, Warner Bros. said that it’s still on track to split itself, but its board is still evaluating other options like a potential transaction for the entire company, or separate transactions for the Warner Bros. and Discovery Global businesses.

Other interested parties may include streaming giant Netflix and telecommunications company Comcast, according to reports. This would make “strategic sense,” Morningstar Equity Research analyst Matthew Dolgin wrote in a note on Oct. 20.

“Acquiring Warner’s studios would be a smart move for Netflix, which would gain the extensive Warner library and premier film and TV studios that it lacks,” he said. “Comcast would benefit from merging the lagging Peacock service with HBO Max.”

Shares of Warner Bros. have soared 117% this year on merger excitement. Paramount stock has risen 46%.

If Paramount is successful in acquiring the totality of Warner Bros., it would be taking on a strong studios segment—following solid performances by films like Superman —but a declining TV segment as customers cut the cable cord. Warner Bros. reported third-quarter global linear networks revenue of $3.88 billion, a 22% drop from the prior year.

A possible merger between Paramount and Warner Bros. also comes after the completion of the highly anticipated merger between Paramount and Skydance, which closed in August. That deal didn’t come without controversy, though.

President Donald Trump sued CBS—one of Paramount’s TV channels—in 2024, alleging the network deceitfully edited a 60 Minutes interview with former Vice President Kamala Harris. Paramount and Trump settled the lawsuit in July, with the company agreeing to pay him $16 million. The timing of the deal has been pointed out by critics, who noted that the Federal Communications Commission approved the merger not long after the settlement agreement.

Write to Angela Palumbo at angela.palumbo@dowjones.com