Paramount Global-Class B (NASDAQ:PARA) Reports Mixed Q2 Earnings Amid Skydance Merger Uncertainty

Paramount Global-Class B (NASDAQ:PARA) reported second-quarter earnings that surpassed analyst expectations, though revenue fell short of estimates. The mixed results come as the company prepares for a transition in ownership with the pending Skydance merger.

Earnings and Revenue Performance

• Earnings Per Share (EPS): The company posted Q2 2025 EPS of $0.46, beating the consensus estimate of $0.366. This represents a 25.7% positive surprise, driven by cost reductions and improved profitability in streaming.
• Revenue: Reported revenue came in at $6.849 billion, slightly below the estimated $6.976 billion, a 1.8% miss. The shortfall suggests ongoing challenges in monetization despite operational efficiencies.

Market Reaction

Following the earnings release, PARA shares saw a modest decline in after-hours trading, dipping 0.24%, while the stock has remained relatively flat over the past week (+0.76%) and month (+1.06%). The muted reaction indicates that while earnings outperformance is a positive, investors may be weighing the revenue miss against broader uncertainties—particularly the impending merger and long-term streaming profitability.

Key Takeaways from the Press Release

• Cost Discipline: Paramount highlighted lower expenses as a key factor in boosting profitability, particularly within its Direct-to-Consumer (DTC) segment.
• Streaming Growth: The company noted improved margins in its streaming business, though it did not provide specific subscriber updates.
• Upcoming Merger: The earnings release precedes the Skydance deal, which has been a focal point for investors assessing Paramount’s strategic direction.

Looking Ahead

Analysts expect Q3 2025 revenue of $6.836 billion and full-year sales of $28.97 billion, with EPS projections at $0.44 for the next quarter. The lack of formal guidance from Paramount leaves these estimates as the primary benchmark for future performance.

For a deeper dive into Paramount’s earnings history and forward estimates, see the full earnings and estimates breakdown.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.