Skydance (NYSE:SKYD) Issues Quarterly Earnings Results

Skydance (NYSE:SKYD) announced its quarterly earnings results on Monday. The media and entertainment company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.18 by $0.27, Zacks reports. Skydance had a negative net margin of 0.99% and a positive return on equity of 6.58%. The company had revenue of $7.03 billion for the quarter, compared to analyst estimates of $7.07 billion.

Here are the key takeaways from Skydance’s conference call:

• Management reaffirmed its target of at least $6 billion in annual run-rate synergies within three years, with 30% expected by the end of 2027 and 70% by the end of 2028. The company expects $4 billion in cash costs to achieve the program, including $1.5 billion–$2 billion in 2027.
• Warner Bros.’ underperforming film slate is expected to create a $200 million Q4 adjusted EBITDA headwind, more than offsetting Paramount’s stronger film performance and slowing combined studio revenue and EBITDA growth.
• Management expects continued strong direct-to-consumer growth and plans to bundle Paramount+ and HBO Max in early 2027, with the services’ combined reach at about 203 million subscribers. The company also expects to converge their technology platforms in roughly a year, though pricing changes will be phased in cautiously.
• For 2027, management expects growth in D2C revenue, Skydance Studios revenue, and total adjusted EBITDA, and forecasts free cash flow of break-even or better, including synergy costs. It reiterated its medium-term goals of mid-single-digit revenue growth, mid-20% adjusted EBITDA margins, $10 billion in free cash flow by 2030, and net leverage below 3x by the end of 2029.
• The company plans to manage linear TV for cash generation while acknowledging ongoing structural declines; it said those declines have moderated slightly in recent quarters. Management described potential revenue synergies in licensing, advertising, distribution, and streaming as upside that is not included in its business plan.

Skydance Trading Down 1.7%

SKYD traded down $0.14 during midday trading on Wednesday, hitting $7.90. The company’s stock had a trading volume of 4,367,699 shares, compared to its average volume of 14,624,922. Skydance has a 52-week low of $6.61 and a 52-week high of $16.60. The firm has a 50-day moving average price of $6.79 and a two-hundred day moving average price of $5.53. The company has a current ratio of 1.04, a quick ratio of 0.88 and a debt-to-equity ratio of 1.13. The firm has a market cap of $8.86 billion, a P/E ratio of -29.26 and a beta of 1.64.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Sanford C. Bernstein reiterated a “market perform” rating on shares of Skydance in a research note on Wednesday, October 21st. Citizens Jmp reduced their target price on shares of Skydance from $14.00 to $13.00 and set a “market outperform” rating for the company in a report on Tuesday. Cantor Fitzgerald initiated coverage on shares of Skydance in a research note on Friday, October 23rd. They set an “overweight” rating for the company. Stephens raised Skydance from a “buy” rating to an “overweight” rating in a research note on Friday, October 23rd. Finally, Benchmark decreased their price objective on Skydance from $9.50 to $8.00 and set a “buy” rating for the company in a research report on Wednesday, August 5th. Ten investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and seven have given a Sell rating to the company’s stock. Based on data from MarketBeat, Skydance currently has an average rating of “Hold” and an average price target of $6.70.

Skydance News Summary

These are some of the SKYD news items that stood out recently:

• Positive Sentiment: Skydance plans to cut about $6 billion in costs over three years by consolidating operations and reducing expenses. If achieved, the savings could improve profitability, though execution and restructuring costs remain important considerations. Skydance unveils a $6 billion reset
• Positive Sentiment: The company reported quarterly EPS of $0.45, above the $0.18 consensus estimate. It also plans to bundle Paramount+ with HBO Max in early 2027; Paramount+ revenue was reported up 21% in the quarter, supporting the case for streaming as a growth driver. Skydance earnings and growth plan
• Negative Sentiment: Revenue was $7.03 billion, slightly below the $7.07 billion estimate. More importantly, reports say a Warner Bros. film slump is weighing on the studio outlook, including an expected $200 million fourth-quarter profit hit—dampening the impact of the earnings beat. Warner Bros. film slump overshadows earnings beat

Skydance Company Profile

Skydance Corporation is a global media and entertainment company formerly known as Paramount Skydance Corporation. Paramount Skydance was formed in 2025 through the combination of Paramount Global and Skydance Media. In October 2026, the company completed its acquisition of Warner Bros. Discovery and changed its name to Skydance Corporation. The company’s portfolio includes Paramount Pictures, Warner Bros. Pictures, CBS, HBO, HBO Max, Paramount+, Pluto TV, CNN, Discovery, HGTV, Food Network, TLC, TNT Sports and a broad range of cable and international television networks.