Paramount Global Posts Q1 Revenue $7.19B Beats Estimates

Paramount Global reported first-quarter revenue of $7.19 billion, beating Wall Street estimates despite a 6.4% year-over-year decline, driven primarily by growth in its direct-to-consumer segment including Paramount+, BET, and PlutoTV. The direct-to-consumer revenue grew by 9%, supported by a strong lineup of originals and post-theatrical releases like "Gladiator II," while its TV Media and Filmed Entertainment segments faced declines. Paramount+ added 1.5 million subscribers during the quarter, slightly below expectations, but the service is on track to achieve domestic profitability by 2025, with improved subscriber engagement and reduced churn contributing to a $180 million increase in DTC profitability. The company’s adjusted EPS of $0.29 surpassed analyst estimates, reflecting operational resilience amid challenging market conditions. Analysts maintain a cautious outlook, with a consensus "Hold" rating and an average price target implying modest upside potential near 2.5%, though some estimates suggest a fair value closer to $14.12, indicating possible further gains. Additionally, Paramount’s planned $8 billion merger with Skydance Media has been extended, with expectations to close in the first half of the year, potentially boosting future studio revenue with projects like "Mission Impossible - The Final Reckoning."