Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing PSKY more generously than it does today.
Analysis OverviewSellUpdated May 1, 2026
Paramount Skydance Corporation Class B Common Stock (PSKY) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Sell
Covering
29
analysts
7 bullish · 12 bearish · 29 covering PSKY
Strong Buy
0
Buy
7
Hold
10
Sell
12
Strong Sell
0
Consensus Target
$13
+15.7% vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
29
Published analyst ratings
Valuation Context
9.7x
Forward P/E · Market cap $11.8B
PSKY price targets
Three scenarios for where PSKY stock could go
Current
~$11
Confidence
43 / 100
Updated
May 1, 2026
Market caseClosest to today
Base case
—
The base case reflects analyst consensus expectations — steady delivery without requiring a major catalyst or re-rating.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Paramount Skydance Corporation Class B Common Stock
PSKY · NASDAQCommunication ServicesEntertainmentDecember year-end
Paramount Skydance Corporation is a major media and entertainment company that operates television networks, produces films and TV shows, and runs streaming services. It generates revenue through advertising on its TV networks and streaming platforms, subscription fees from its Paramount+ and other streaming services, and licensing content from its film and television studios. The company's competitive advantage lies in its extensive content library — including iconic franchises like Star Trek and Mission: Impossible — and its multi-platform distribution ecosystem that spans broadcast, cable, and streaming.
Market Cap
$11.8B
Revenue TTM
$29.4B
Net Income TTM
-$226M
Net Margin
-0.8%
PSKY Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
83%Exceptional
12 quarters tracked
Revenue Beat Rate
58%Exceptional
vs consensus estimates
Avg EPS Surprise
+235.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$0.46/$0.41
Revenue
$6.8B/$6.8B
Q4 2025
EPS
$0.49/$0.13
Revenue
$6.7B/$8.2B
Q1 2026
EPS
$-0.12/$-0.02
Revenue
$8.5B/$7.3B
Q2 2026
EPS
$0.23/$0.15
Revenue
$7.3B/$7.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.46/$0.41 | +12.2% | $6.8B/$6.8B | +1.2% |
| Q4 2025 | $0.49/$0.13 | +276.9% | $6.7B/$8.2B | -18.0% |
| Q1 2026 | $-0.12/$-0.02 | -500.0% | $8.5B/$7.3B | +16.5% |
| Q2 2026 | $0.23/$0.15 | +53.3% | $7.3B/$7.0B | +4.4% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$29.7B
+1.1% YoY
FY2
$29.9B
+0.8% YoY
EPS Outlook
FY1
$-0.27
-33.1% YoY
FY2
$-1.01
-275.4% YoY
Trailing FCF (TTM)$462M
FCF Margin: 1.6%
Next Earnings
May 6, 2026
Expected EPS
$0.16
Expected Revenue
$7.3B
PSKY beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
PSKY Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $29.2B
Product Mix
Latest annual revenue by segment or product family
Affiliate And Subscription
45.0%
+13.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
81.1%
-3.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Affiliate And Subscription is the largest disclosed segment at 45.0% of FY 2024 revenue, up 13.9% YoY.
UNITED STATES is the largest reported region at 81.1%, down 3.0% YoY.
PSKY Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $25 — implies +129.8% from today's price.
Upside to Fair Value
129.8%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PSKY
-1.2x
vs
S&P 500
25.2x
105% discount
vs Communication Services Trailing P/E
PSKY
-1.2x
vs
Communication Services
15.5x
108% discount
vs PSKY 5Y Avg P/E
Today
-1.2x
vs
5Y Average
7.4x
116% discount
Forward PE
9.7x
S&P 500
19.1x
-49%
Communication Services
13.1x
-26%
5Y Avg
—
—
Trailing PE
-1.2x
S&P 500
25.2x
-105%
Communication Services
15.5x
-108%
5Y Avg
7.4x
-116%
PEG Ratio
—
S&P 500
1.75x
—
Communication Services
0.66x
—
5Y Avg
—
—
EV/EBITDA
—
S&P 500
15.3x
—
Communication Services
8.7x
—
5Y Avg
8.0x
—
Price/FCF
24.2x
S&P 500
21.3x
+14%
Communication Services
11.6x
+109%
5Y Avg
33.1x
-27%
Price/Sales
0.4x
S&P 500
3.1x
-87%
Communication Services
1.0x
-61%
5Y Avg
0.4x
+5%
Dividend Yield
0.40%
S&P 500
1.88%
-79%
Communication Services
3.38%
-88%
5Y Avg
3.04%
-87%
| Metric | PSKY | S&P 500 | Communication Services | 5Y Avg PSKY |
|---|---|---|---|---|
| Forward PE | 9.7x | 19.1x-49% | 13.1x-26% | — |
| Trailing PE | -1.2x | 25.2x-105% | 15.5x-108% | 7.4x-116% |
| PEG Ratio | — | 1.75x | 0.66x | — |
| EV/EBITDA | — | 15.3x | 8.7x | 8.0x |
| Price/FCF | 24.2x | 21.3x+14% | 11.6x+109% | 33.1x-27% |
| Price/Sales | 0.4x | 3.1x-87% | 1.0x-61% | 0.4x |
| Dividend Yield | 0.40% | 1.88% | 3.38% | 3.04% |
PSKY trades above S&P 500 benchmarks on 1 of 4 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolPSKY Financial Health
Verdict
Stressed
Key financial metrics for PSKY are shown below.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$29.4B
Revenue Growth
TTM vs prior year
+2.3%
Gross Margin
Gross profit as a share of revenue
34.8%
Operating Margin
Operating income divided by revenue
-18.0%
Net Margin
Net income divided by revenue
-0.8%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$-0.20
Free Cash Flow (TTM)
Cash generation after capex
$462M
FCF Margin
FCF as share of revenue — the primary cash quality signal
1.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-14.7%
ROA
Return on assets, trailing twelve months
-0.5%
Cash & Equivalents
Liquid assets on the balance sheet
$3.3B
Net Debt
Total debt minus cash
$11.1B
Debt Serviceability
Net debt as a multiple of annual free cash flow
24.0× FCF
~24.0 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
-1.6%
* Elevated by buyback-compressed equity — compare ROIC (-14.7%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.4%
Dividend
0.4%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$0.04
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
1.1B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pagePSKY Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
High Debt and Financial Leverage
The acquisition of Warner Bros. Discovery (WBD) is expected to burden PSKY with a debt load potentially reaching up to $110 billion. This high leverage raises significant concerns regarding the company's ability to meet its debt obligations, increasing the risk of financial distress or bankruptcy.
High Risk
Integration Challenges
Integrating the operations of Paramount, Skydance, and potentially WBD presents complex operational challenges. Difficulties in harmonizing corporate cultures and technological systems could lead to significant disruptions and delays in achieving anticipated synergies.
High Risk
Profitability and Cash Flow Concerns
PSKY is facing ongoing profitability challenges, highlighted by negative earnings per share and net margins. Although free cash flow has shown some recovery, it remains a concern for investors, particularly given the company's Altman Z-score indicating a risk of financial distress.
Medium
Declining Core Businesses
PSKY's traditional businesses, including linear TV and film, are experiencing declines, which could impact overall revenue. While the company is investing in streaming, its operations in this area currently lack scale and remain unprofitable.
Medium
Market and Competitive Pressures
The media and entertainment industry is highly competitive, with established players like Netflix and Disney, as well as tech giants entering the space. Evolving consumer preferences pose additional risks to PSKY's market position.
Medium
Regulatory Scrutiny
The acquisition of WBD faces significant regulatory hurdles from agencies such as the Department of Justice and European regulators. These challenges could affect the timeline or terms of the deal, impacting PSKY's strategic plans.
Lower
Leadership and Operational Risks
Recent leadership changes, including the dismissal of the president amid allegations of sharing confidential information, raise concerns about stability. Additionally, CEO David Ellison's inexperience with M&A integration and managing declining assets could pose operational risks.
Lower
Stock Volatility
PSKY stock exhibits high volatility, with a beta of 1.55, indicating sensitivity to market fluctuations. The stock price has reacted sharply to news regarding the WBD deal and its associated risks, which could lead to unpredictable investment outcomes.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why PSKY Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Multiple Catalysts for Growth
PSKY has a long list of potential positive triggers, including the approval of its acquisition of Warner Bros. Discovery (WBD) and projected cost savings exceeding $9 billion. This includes a target of $6 billion in savings, margin expansion, successful film releases, and securing new sports rights.
Short Squeeze Potential
A significant short interest in PSKY stock, reaching approximately 77 million shares in March 2026, presents a potential short squeeze as an upside catalyst. This high level of short interest could lead to increased buying pressure if the stock begins to rise.
Content Monetization and Strategy
PSKY aims to maximize return on investment for its content by utilizing multiple distribution windows, including theaters, pay TV, streaming, and broadcast. The company plans to increase its film output to 15 per year, enhancing its library value and revenue potential.
Premium Sports Content
Exclusive deals for NFL and UFC content provide PSKY with significant pricing power and bundle appeal. This strategic advantage allows the company to attract a larger audience and generate higher revenues from its sports offerings.
Streaming Scale
The combined PSKY/WBD entity is expected to have 200 million gross streaming subscribers, positioning it as a major player in the streaming market. This scale is anticipated to lead to lower churn rates and higher margins, creating a unified global platform.
Operational Efficiency
PSKY has demonstrated high labor efficiency, generating significant revenue per full-time employee. This operational strength positions the company favorably among top industry players, enhancing its profitability potential.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
PSKY Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$10.89
52W Range Position
19%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$8.62
+26.4% from the low
52-Week High
$20.86
-47.8% from the high
1 Month
+10.59%
3 Month
+3.15%
YTD
-17.4%
1 Year
-4.7%
3Y CAGR
-13.6%
5Y CAGR
-22.2%
10Y CAGR
-15.4%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
PSKY vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
9.7x
vs 14.9x median
-35% below peer median
Revenue Growth
+1.1%
vs +6.8% median
-84% below peer median
Net Margin
-0.8%
vs 11.5% median
-107% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
PSK PSKY Paramount Skydance Corporation Class B Common Stock | $11.8B | 9.7x | +1.1% | -0.8% | Sell | +15.7% |
WBD WBD Warner Bros. Discovery, Inc. | $68.2B | — | +10.7% | 1.9% | Hold | +10.1% |
DIS DIS The Walt Disney Company | $191.3B | 16.4x | +4.5% | 11.5% | Buy | +29.2% |
FOX FOXA Fox Corporation | $13.9B | 13.4x | +6.8% | 11.4% | Hold | +12.8% |
CMC CMCSA Comcast Corporation | $96.3B | 7.5x | -1.0% | 14.8% | Buy | +20.5% |
NFL NFLX Netflix, Inc. | $374.0B | 24.8x | +13.9% | 24.3% | Buy | +31.7% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
PSKY Dividend and Capital Return
PSKY returns 0.4% total yield, led by a 0.40% dividend.
Dividend UnknownFCF Well Covered
Total Shareholder Yield
0.4%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
0.40%
Payout Ratio
—
How PSKY Splits Its Return
Div 0.40%
Dividend 0.40%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.04
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
-40.7%
5Y Div CAGR
-26.9%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
1.1B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.10 | — | — | — |
| 2025 | $0.20 | 0.0% | 0.0% | 0.3% |
| 2024 | $0.20 | -48.7% | 0.0% | 2.0% |
| 2023 | $0.39 | -59.4% | 0.0% | 3.9% |
| 2022 | $0.96 | 0.0% | 0.3% | 6.0% |
FAQ
7 questionsPSKY Investor Questions
Common questions answered from live analyst data and company financials.
01Is Paramount Skydance Corporation Class B Common Stock (PSKY) stock a buy or sell in 2026?
Paramount Skydance Corporation Class B Common Stock (PSKY) is rated Sell by Wall Street analysts as of 2026. Of 29 analysts covering the stock, 7 rate it Buy or Strong Buy, 10 rate it Hold, and 12 rate it Sell or Strong Sell. The consensus 12-month price target is $13, implying +15.7% from the current price of $11.
02What is the PSKY stock price target for 2026?
The Wall Street consensus price target for PSKY is $13 based on 29 analyst estimates. The high-end target is $16 (+46.9% from today), and the low-end target is $10 (-8.2%).
03Is Paramount Skydance Corporation Class B Common Stock (PSKY) stock overvalued in 2026?
PSKY trades at 9.7x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Paramount Skydance Corporation Class B Common Stock (PSKY) stock in 2026?
The primary risks for PSKY in 2026 are: (1) High Debt and Financial Leverage — The acquisition of Warner Bros. (2) Integration Challenges — Integrating the operations of Paramount, Skydance, and potentially WBD presents complex operational challenges. (3) Profitability and Cash Flow Concerns — PSKY is facing ongoing profitability challenges, highlighted by negative earnings per share and net margins. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Paramount Skydance Corporation Class B Common Stock's revenue and earnings forecast?
Analyst consensus estimates PSKY will report consensus revenue of $29.7B (+1.1% year-over-year) and EPS of $-0.27 (-33.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $29.9B in revenue.
06When does Paramount Skydance Corporation Class B Common Stock (PSKY) report its next earnings?
Paramount Skydance Corporation Class B Common Stock is expected to report its next earnings on approximately 2026-05-06. Consensus expects EPS of $0.16 and revenue of $7.3B. Over recent quarters, PSKY has beaten EPS estimates 83% of the time.
07How much free cash flow does Paramount Skydance Corporation Class B Common Stock generate?
Paramount Skydance Corporation Class B Common Stock (PSKY) generated $462M in free cash flow over the trailing twelve months — a free cash flow margin of 1.6%. PSKY returns capital to shareholders through dividends (0.4% yield) and share repurchases ($0 TTM).