Markets

Skydance Stock Plunges 8% After Warner Bros. Film Warning Puts $200 Million Of Profit At Risk

Third-quarter sales rose 5%, but weaker Warner Bros. films are expected to slow studio growth in the fourth quarter.

Skydance, which runs television networks, film studios and streaming services, plunged 8.28% to $7.98 in Tuesday trading, as of 10:03 AM ET, losing $3.6 billion in market value after Monday's earnings update. Warner Bros. films put up to $200 million of fourth-quarter profit at risk.

Sales Grew Before Warner Joined

Skydance's third-quarter revenue rose 5% to $7.0 billion against pro forma year-earlier sales. Those figures exclude Warner Bros. Discovery: the purchase closed after the quarter ended, expanding the business beyond the operations covered by these results.

Management described the revenue gains on Monday's earnings call as upside that its forecasts had not included. The fourth-quarter film warning concerns the Warner Bros. business now inside the company, rather than the businesses that produced the reported third-quarter sales.

Skydance's market value stood at $40.2 billion in Tuesday trading, as of 10:03 AM ET. Its shares were 19% below their 52-week high in Tuesday trading, as of 10:03 AM ET.

A $4 Billion Integration Bill

Skydance expects roughly $4 billion in nonrecurring cash restructuring outlays. Its target is at least $6 billion in annual cost cuts within three years, after reinvestment—a recurring savings goal set against an upfront cash bill.

The integration spans a media business that earns money from advertising, subscriptions, distributor fees, and releasing and licensing films and shows. Paramount Pictures and CBS sit alongside brands including Nickelodeon, MTV, BET and Comedy Central; its streaming services include Paramount+ and Pluto TV, with Skydance also operating animation, games and sports divisions.

In 2025, the company reported TV Media, Direct-to-Consumer and Filmed Entertainment segments. That mix puts the film-profit warning alongside a separate effort to combine streaming services: Skydance plans an HBO Max–Paramount+ bundle for early 2027.

Skydance said it plans to provide full-year guidance for the combined company with its December-quarter results.