Hollywood
Paramount Q1 profit jumps 59 per cent, revenue hits $7.3 billion
Strong Q1 performance, hit content slate and WBD merger in focus
MUMBAI: Paramount Global is scaling new heights, proving that even in a shifting media landscape, this mountain of entertainment has plenty of climb left. Reporting its first-quarter results for 2026, the company, now under the Skydance Corporation banner, delivered a robust financial performance that surpassed expectations and set a confident tone for the year ahead.
Paramount reported total Q1 revenue of $7.3 billion, a 2 per cent increase compared to the previous year. The real story, however, lay in the company’s profitability. Adjusted EBITDA vaulted 59 per cent to $1.2 billion. This strong start has allowed leadership to reaffirm its full-year targets of $30 billion in revenue and $3.8 billion in adjusted EBITDA.
The Direct-to-Consumer segment is no longer just a growth prospect; it is a primary engine of the business. DTC revenue grew 11 per cent to $2.4 billion, with Paramount+ specifically seeing a 17 per cent surge in revenue.
While the headline subscriber growth showed a modest increase of 0.7 million to reach a total of 79.6 million, the underlying performance was stronger. Excluding a strategic hard exit from over 1 million international bundle subscribers, the platform actually added 1.9 million users. More importantly, DTC adjusted EBITDA improved significantly to $251 million, representing a 10 per cent margin.
The mountain remains a destination for top-tier audiences, driven by a string of recent hits:
Landman: Has officially become the most-watched series in the history of Paramount+.
The Madison: Taylor Sheridan’s latest debut attracted 12.5 million global viewers in its first month, marking his strongest and most female-skewing launch to date.
Marshals: A cross-platform success reaching 18.5 million global viewers.
Scream 7: On the big screen, the horror franchise reached a new pinnacle, becoming the highest-grossing instalment in its 30-year history with over $200 million at the global box office.
In the realm of traditional television, CBS continues to hold the crown. The network currently boasts 13 of the top 20 primetime series. Notably, it claims all four of the top new series: Marshals, Sheriff Country, CIA, and Boston Blue, a feat no broadcast network has achieved since the early 1990s. TV Media adjusted EBITDA grew 11 per cent to $1.1 billion, maintaining a healthy 29 per cent margin.
The industry is watching closely as Paramount Global moves toward its massive merger with Warner Bros. Discovery, expected to close by the end of Q3 2026. The company has already secured $10 billion in debt financing and $49 billion in syndicated bridge financing to facilitate the deal. WBD shareholders gave their overwhelming approval on 23 April.
Simultaneously, Paramount is streamlining its operations. The company expects to achieve $2.5 billion in cost efficiencies by the end of this year, on its way to a total of over $3 billion by 2027. This includes a digital transformation where 80 per cent of the engineering team is now using AI-powered tools to accelerate development.
With a unified streaming tech stack set to launch mid-year and a major refresh for Pluto TV on the horizon, Paramount is positioning itself as a leaner, more profitable titan of the modern media era.
