Paramount Swings to $73 Million Profit in Q3, Driven by Streaming, Studios Growth

Paramount reported $7 billion in revenue and a profit of 6 cents per share in Q3 2026, exceeding Wall Street's expectations of $7.04 billion in revenue and a profit of 20 cents per share. The streaming platforms Paramount+ and HBO Max reached 203 million subscribers worldwide. The company plans to stop disclosing subscribers on a quarterly basis starting in Q4.

HBO Max and Paramount+ will merge into one platform in early 2027. Paramount Skydance's profit of $73 million was driven by growth in its streaming and studios businesses, despite declines in the linear TV business. Paramount+ revenue grew 21% to $2.13 billion, adding 600,000 subscribers for a total of 82.2 million. The company's direct-to-consumer business posted a profit of $225 million with revenue growing 11% to $2.5 billion, benefiting from higher costs from planned investments in programming.

Studios revenue grew 23% to $1.5 billion with a profit of $129 million, driven by strong licensing and third-party content. The third quarter saw releases like "Heart of the Beast" starring Brad Pitt and "PAW Patrol: The Dino Movie," which grossed over $160 million worldwide. Paramount Pictures plans to double its output in 2026 with 15 releases.

The TV Media unit posted a $1 billion profit, but revenue fell 7% to $3 billion due to cord-cutting and the absence of sold channels, offset by higher political ad revenue. Skydance is looking to find $6 billion in merger-related cost savings, including consolidating redundant back-office functions, reducing management layers, and shifting to lower-cost support functions. The company expects at least $6 billion in savings from the merger.