Paramount Global 2025 Q2 Earnings Strong Turnaround with Net Income Swinging 101.1%

Paramount Global (PARA) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Paramount Global exceeded expectations in terms of EPS, posting $0.46 compared to the consensus estimate of $0.41, marking a 12.2% positive surprise. Revenue for the quarter was slightly below expectations, at $6.85 billion versus the anticipated $6.86 billion. The company maintains its guidance, projecting Q3 2025 revenue to be approximately $7.13 billion, reflecting a year-over-year decline of 7%. Executives remain confident in leveraging the Skydance merger to bolster market positioning despite current revenue pressures.

Revenue

Paramount Global reported Q2 2025 revenue of $6.85 billion, up 0.5% from $6.81 billion in the same quarter last year.

Earnings/Net Income

Paramount Global achieved profitability with EPS of $0.08 in Q2 2025, a significant turnaround from a loss of $8.12 per share in Q2 2024. The company generated a net income of $61 million, a positive swing from the previous year's net loss of $5.40 billion. This EPS indicates strong recovery performance.

Price Action

The stock price of Paramount Global climbed 4.75% during the latest trading day but experienced a 5.20% drop over the most recent full trading week, and month-to-date edged down 2.56%.

Post-Earnings Price Action Review

The strategy of purchasing Paramount Global shares following a quarter-over-quarter revenue increase on the financial report release date and holding them for 30 days has consistently delivered robust returns over the past three years. Achieving a 97.54% return, this approach outperformed the benchmark return of 85.57% by 11.97%. With a compound annual growth rate (CAGR) of 14.70% and a maximum drawdown of 0.00%, the strategy demonstrated solid performance in terms of both returns and risk management. These results underscore the efficacy and reliability of this investment strategy, highlighting its potential for continued success in navigating market volatility.

CEO Commentary

Shari Redstone, Non-Executive Chair, emphasized Paramount Global's successful transition to a streaming-first company, with streaming revenues surpassing declines in linear segments. Paramount+ was highlighted as a major growth driver, achieving record low churn rates and increased watch time. The co-CEOs, George Cheeks, Chris McCarthy, and Brian Robbins, noted the strength of their content strategy, leading to substantial viewership growth with CBS maintaining its position as the most-watched broadcast network. They expressed pride in the team's efforts and commitment to enhancing long-term growth through strategic content investments.

Guidance

Paramount Global expects Q3 2025 revenue to be approximately $7.13 billion, reflecting a year-over-year decline of 7%. The company anticipates an adjusted EPS of $0.08 for Q2, with a net income of $61 million. Executives remain optimistic about leveraging the upcoming Skydance merger to improve market positioning and drive future growth, despite current revenue pressures.

Additional News

Paramount Global continues to make strategic moves, including the anticipated closure of its merger with Skydance scheduled for August 7, 2025. This merger is expected to lead to significant cost reductions and asset sales, potentially cutting costs by $2 billion. The merger aligns with Paramount's vision to unify Paramount+ and Pluto TV under new leadership, focusing on scalable content. Additionally, Paramount announced a CFO transition, with Naveen Chopra departing and Andrew Warren stepping in as Strategic Advisor to the Office of the CEO. Furthermore, Paramount declared a quarterly cash dividend of $0.05 per share on both its Class A and Class B Common Stock, paid on July 1, 2025, emphasizing its commitment to returning value to shareholders.