TLDRSkydance (SKYD) stock fell 8.7% to $7.94 on Tuesday, erasing Monday’s 8.6% gain.Q3 adjusted earnings of 45 cents beat the 13-cent estimate, while revenue of $7.03 billion narrowly missed.Gross debt stands at $87 billion against $10 billion in cash after the Warner Bros. deal.A weak Warner film slate could cut Q4 profit by up to $200 million.BofA kept an Underperform rating with a $9 target, while Citizens JMP trimmed its target to $13.Skydance (SKYD) stock fell 8.7% to $7.94 on Tuesday. That wiped out the 8.6% jump it posted on Monday after earnings.Skydance Corporation, SKYDThe stock is now down 35% in 2026. Trading ran well below normal, with about 5.8 million shares changing hands versus a daily average near 14.6 million.The Q3 report was a strange one. The quarter ended Sept. 30, and the Warner Bros. merger closed Oct. 6, so none of Warner’s numbers were included.SKYDANCE $SKYD Q3’26 EARNINGS HIGHLIGHTS Revenue: $7.03B (Est. $7.04B) ; +5% YoY Adj. EPS: $0.45 (Est. $0.11) GAAP EPS: $0.06 Adj. EBITDA: $1.0B; 14% marginParamount+: Subscribers: 82.2M; +6% YoY Revenue: $2.13B; +21% YoYSegment Revenue: Studios:… pic.twitter.com/dD0PQr0NIO— Wall St Engine (@wallstengine) November 9, 2026Adjusted earnings came in at 45 cents a share. FactSet had expected 13 cents.Revenue rose 5% from a year ago to $7.03 billion. That was a hair under the $7.04 billion analysts projected.Paramount+ revenue grew 21% in the quarter. The company also plans to bundle that service with HBO Max in early 2027.The Debt ProblemSkydance said it holds $87 billion in gross debt after closing the Warner deal. It has only $10 billion in cash to set against that.The company expects to burn cash in 2026. It wants to flip that into $10 billion of positive cash flow by 2030.Management is targeting more than $6 billion in yearly savings within three years. The plan includes merging operations, trimming technology costs and cutting layers of management.At the same time, the company says it will keep spending on content. It cited a base of more than $30 billion in annual content spend.The fourth quarter looks rougher. Skydance warned the Warner film slate could cut profit by up to $200 million from earlier expectations.It did not give full fourth-quarter guidance. Instead, it said it would issue full-year outlooks going forward.What Analysts Are SayingWall Street is split. Of 27 firms tracked by FactSet before earnings, seven rated the stock a Buy and eight rated it a Sell.BofA’s Jessica Reif Ehrlich kept an Underperform rating and a $9 price target on Tuesday. She called the integration “daunting” and said it will take “a significant amount of time.”Citizens JMP cut its target from $14 to $13 but kept its outperform rating. MarketBeat lists a consensus rating of Hold with an average target of $6.42.UBS analyst John Hodulik estimated last month that about two-thirds of profits still come from linear TV. Much of that sits in genres that streaming could eat into.Skydance also named Marvel veteran Jeremy Latcham to lead DC Studios. He replaces James Gunn and Peter Safran, who are departing.On Tuesday, the stock traded as low as $7.75 after closing at $8.70 the day before. Its 50-day moving average sits at $6.74.The post Skydance (SKYD) Stock Drops 9% as $87 Billion Debt Load Overshadows Earnings Beat appeared first on Blockonomi.