Paramount reported projections for the business that would result from its combination with Warner Bros. Discovery, saying the merged entity is expected to deliver $69 billion in pro forma revenue in fiscal year 2026.
Alongside that revenue target, company projections set an adjusted EBITDA goal of $18 billion and forecast $6 billion of synergies stemming from the transaction. The projections were provided as forward-looking targets for the combined organization.
Looking farther ahead, the company laid out expectations for the five-year span from 2026 through 2030. Over that interval, management is forecasting revenue growth on a compound annual growth rate basis in the mid-single-digit percentage range. The plan also calls for the merged company to reach an adjusted EBITDA margin in the mid-20% range by 2030.
Free cash flow conversion is another metric included in the outlook. The company expects free cash flow conversion to be about 50% during the forecast period, indicating an anticipated ability to convert roughly half of adjusted EBITDA into free cash flow across the years covered by the plan.
These numerical targets - $69 billion of pro forma revenue in fiscal 2026, $18 billion of adjusted EBITDA, $6 billion of synergies, mid-single-digit CAGR for 2026-2030, a mid-20% adjusted EBITDA margin by 2030 and roughly 50% free cash flow conversion - form the core of the company's stated financial expectations for the combined business.
The company's presentation of these projections frames the combination as a means to create a larger pro forma revenue base in 2026 and establish multi-year targets for profitability and cash conversion through 2030.
Summary
Paramount, on a pro forma basis reflecting its combination with Warner Bros. Discovery, expects $69 billion of revenue in fiscal 2026. The merged company is targeting $18 billion of adjusted EBITDA and $6 billion of synergies, with revenue projected to grow at a mid-single-digit compound annual rate from 2026 through 2030, an adjusted EBITDA margin in the mid-20% range by 2030, and approximately 50% free cash flow conversion during the forecast period.