TLDR
- Paramount Skydance (PSKY) reports Q4 fiscal 2025 earnings after market close on February 25
- Revenue expected at $8.15 billion, up 2.1% year-over-year; adjusted loss forecast at $0.01 per share
- PSKY stock is down 33–35% over the past three to six months, trading around $10.45
- The company is locked in a bidding war with Netflix to acquire Warner Bros. Discovery, with a shareholder vote set for March 20, 2026
- Wall Street holds a Moderate Sell consensus on PSKY, with an average price target of $12.33
Paramount Skydance is set to report fourth-quarter fiscal 2025 results after the market close on February 25, and the numbers are almost secondary to the drama swirling around the company right now.
Paramount Skydance Corporation Class B Common Stock, PSKY
Analysts expect revenue of $8.15 billion, up from $7.98 billion a year ago. The adjusted loss is forecast at $0.01 per share, a notable improvement from the $0.11 per share loss in the prior-year period. The net loss, however, is expected to widen to $378 million from $224 million.
PSKY has beaten earnings expectations in six of its last eight quarters, so there’s a track record of outperformance — though the bigger story this quarter isn’t the numbers.
The stock has fallen sharply. PSKY is down roughly 33–35% over the past three to six months, trading around $10.45. Investors are nervous about the company’s ongoing pursuit of Warner Bros. Discovery and what a deal would mean for the balance sheet.
The WBD Bidding War
Paramount made a revised offer to acquire Warner Bros. Discovery on Tuesday, the latest move in a heated bidding war with Netflix. Before the revision, PSKY had offered $30 per share, up from its initial $19 per share offer back in September.
Netflix had previously agreed to buy Warner’s studio and streaming assets for $27.75 per share. Warner then reopened talks with Paramount after PSKY agreed to cover the $2.8 billion termination fee it would owe Netflix if that deal collapsed. If Warner accepts Paramount’s revised offer, Netflix still has the right to match it.
Needham analyst Laura Martin argued that a $34 per share bid from PSKY could end the bidding war outright. She noted that Netflix’s deal math shows no earnings accretion above $30 per share in her base case, and the key question is whether Netflix will walk away if Paramount bids higher.
Raymond James analyst Ric Prentiss sees PSKY building momentum in its bid but flagged concerns around heavy debt financing, with leverage above 6x. He suggested Paramount may need to raise its cash offer by $2–$3 per share before a “best and final” bid is submitted ahead of the March 20 shareholder vote.
Political and Regulatory Wrinkles
The situation has more layers. President Trump recently demanded that Netflix remove Susan Rice, former President Obama’s national security advisor, from its board.
The Justice Department has also expanded its antitrust review of the proposed Warner-Netflix deal. Wedbush analysts believe Netflix co-CEO Ted Sarandos has signaled the company may walk away if Warner accepts Paramount’s revised offer — which could leave PSKY facing its own regulatory scrutiny alone.
On the business side, the company is still working through integration after its August 2025 merger between Paramount Media and Skydance Corporation. It secured streaming and content partnerships with UFC and the “South Park” creators during Q3.
Wall Street’s overall view on PSKY is cautious. The stock carries a Moderate Sell consensus on TipRanks — zero Buy ratings, one Hold, and three Sells. The average price target sits at $12.33, implying roughly 18.7% upside from current levels.
Bernstein analyst Laurent Yoon holds a Sell rating with a $12 price target. Barrington analyst Patrick Sholl is at Hold.
The shareholder vote on the WBD deal is scheduled for March 20, 2026.
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