With a market cap of $12.9 billion, Paramount Skydance Corporation (PSKY) is a newly combined entertainment powerhouse formed from the merger of Paramount Global and Skydance Media. The company spans streaming, film, television, sports, and gaming, with a portfolio that includes major franchises, a rapidly expanding direct-to-consumer segment, and one of Hollywood’s most active production pipelines.
The entertainment behemoth has outperformed the broader market over the past year. PSKY stock is up 48.2% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 10.5% gains over the same time frame. Over the past six months, PSKY soared 32.1% compared to SPX’s 10.1% return on a YTD basis.
Zooming in further, Paramount Skydance has also surpassed the Communication Services Select Sector SPDR ETF Fund’s (XLC) 13% gains over the past 52 weeks and 8.2% return over the past six months.
On Nov. 10, Paramount Skydance posted its third-quarter earnings, and its shares skyrocketed 9.8% in the next trading session. Total revenue reached $4.1 billion, and it posted a net loss of $0.01 per share. Its streaming revenue jumped roughly 17% year over year, filmed-entertainment grew nearly 30% thanks to the Skydance integration, while legacy TV/media declined about 12% amid continued softness in advertising and linear viewership. Non-GAAP OIBDA stood at $655 million. The company also raised its cost-savings target to $3 billion and outlined more than $1.5 billion in programming investments for 2026.
For the current fiscal year, which ends in December, analysts expect Paramount Skydance’s EPS to drop 45.5% year over year to $0.84. The company has surpassed consensus EPS estimates in three of its past four quarterly reports, while missing on another occasion.
Among the 24 analysts covering the stock, the consensus rating is “Hold.” That’s based on one “Strong Buy” rating, 15 “Holds,” one “Moderate Sell,” and seven “Strong Sell.”
On Oct. 14, Citi’s Jason Bazinet reiterated his “Hold” rating on Paramount Skydance and kept the price target at $20.
While PSKY currently trades above the mean price target of $14.26, the Street-high target of $20 indicates a potential upside of 27.6% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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