Paramount released its Q3 financial report Monday, the first since the $8.4 billion Skydance Media merger and David Ellison becoming CEO.
Revenue for the quarter was $6.71 billion, just below analyst expectations of $6.99 billion. In a letter to shareholders, Ellison shared that he expects total revenue in 2026 to be $30 billion, led by DTV revenue, with global profitability. He also wrote that cost savings from the merger will reach $3 billion, up from the $2 billion the company originally expected.
Those savings are, in part, the result of several rounds of layoffs. In a memo, Ellison wrote ““In some areas, we are addressing redundancies that have emerged across the organization. In others, we are phasing out roles that are no longer aligned with our evolving priorities and the new structure designed to strengthen our focus on growth. Ultimately, these steps are necessary to position Paramount for long-term success.”
In today’s report, Ellison also repeated the company’s “North Star priorities,” which he first wrote about in a public letter just after the merger. Those priorities are:
1) investing in our growth businesses anchored by our creative engines and exceptional storytelling; 2) scaling our direct-to-consumer business globally; and, 3) driving efficiency enterprise-wide with a focus on long-term free cash flow generation.
The letter describes how leadership has focused on those priorities in the first 100 days since launching the “new Paramount” through hiring leaders, focusing on high-impact partnerships, investing in studios, improving efficiency, building the DTC business, and increasing the output of films, TV shows, sports, news, and games.
For streaming, Ellison mentioned some of the top titles on Paramount+, including Mayor of Kingstown which premiered its fourth season last month, Landman, and Dexter: Resurrection. Sports were also a focus, highlighting the media rights agreements with the UFC.
After discussing the increased investment in streaming, Ellison wrote that Paramount+ subscribers should expect a price hike at the beginning of 2026. “These changes will fuel continued reinvestment in the user experience and deliver an even stronger slate of programming for our customers in the year ahead and beyond.”