Paramount Stock Price Targets Cut After Earnings, But All Eyes Are on Warner Bros. Chase

Hollywood Reporter

by Georg Szalai

February 26, 2026

AI-Generated Deep Dive Summary

Paramount’s stock price targets were recently lowered by analysts following its latest earnings report, with much of the focus shifting to its high-stakes pursuit of Warner Bros. Discovery (WBD). While Paramount’s financial performance under CEO David Ellison was deemed “largely in line” with expectations, Wall Street remains keenly interested in the company’s potential acquisition of WBD as a strategic move to accelerate growth and compete more effectively with Netflix. Analysts have highlighted both opportunities and challenges, noting that a successful deal could be transformational but would also face significant execution and regulatory hurdles. The earnings report revealed mixed results across Paramount’s business segments, with TV Media declining 9% in fiscal year ’25 and Filmed Entertainment dropping 5%, though Direct-to-Consumer (DTC) revenue saw a 12% increase driven by subscription growth. This aligns with broader industry trends, where DTC is seen as a key growth area despite ongoing challenges. Analysts have emphasized the importance of accelerating DTC development to offset declines in traditional TV and film revenue streams. The pursuit of WBD is viewed as a critical step toward achieving this goal, potentially providing the content and distribution capabilities needed to compete more effectively. However, analysts also pointed out significant risks, including concerns over a higher bid for WBD and potential regulatory scrutiny if the deal proceeds. Additionally, the ongoing NFL renegotiation discussions remain a thorny issue for Paramount, with the possibility of increased costs impacting investor sentiment throughout the year. These factors underscore the uncertainty surrounding the company’s strategic moves and their impact on its ability to achieve long-term growth. For readers interested in entertainment and media, this story highlights the rapidly evolving landscape of streaming services and the high-stakes mergers and acquisitions that drive competition. The outcome of Paramount’s bid for Warner Bros. Discovery will likely shape the future of both companies and influence how content is produced and consumed globally. With analysts cautioning against overreliance on any single deal, the success of DTC growth and the resolution of major deals like WBD will be crucial in determining Paramount’s future trajectory in the entertainment industry.

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Originally published on Hollywood Reporter on 2/26/2026