Paramount Global (PARA, Financials) outpaced Wall Street expectations in Q1 2025, powered by strong growth in streaming and filmed entertainment, even as executives brace for U.S.-China trade pressures.
Revenue reached $7.19 billion in the first quarter, topping the $7.09 billion consensus estimate. Adjusted earnings per share were $0.29, ahead of analysts' projection of $0.25, according to LSEG.
The direct-to-consumer unit, which includes Paramount+, BET+, and PlutoTV, generated $2.04 billion in revenue — up 9% year over year. Filmed entertainment contributed $627 million, a 4% increase, supported by post-theatrical releases.
The company added 1.5 million Paramount+ subscribers during the quarter, slightly below the 1.66 million expected.
Co-CEO Chris McCarthy said Paramount is focusing on key investments while trimming non-content costs amid ongoing global uncertainty. The leadership noted no "meaningful impact" yet from macroeconomic volatility.
Paramount reaffirmed plans to close its $8 billion merger with Skydance Media in the first half of the year. The company is also counting on Mission Impossible - The Final Reckoning to lift Q2 studio revenue, with speculation that this could be Tom Cruise's final turn as Ethan Hunt.
Morgan Stanley analysts flagged potential risks from President Trump's proposal for a 100% tariff on non-U.S. films — a policy that could disrupt Paramount's international operations.
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