ITV Studios saw its US revenue fall 17% and international revenue drop 24% in the first half of 2026, even as its overall revenue crept up 2% to £912M ($1.2B), according to its H1 results reported by Deadline.

Studios chief Julian Bellamy pinned the declines on what he called a "softening of demand" in the free-to-air space — traditional broadcast networks buying fewer shows. CEO Carolyn McCall moved quickly to frame it as a contained problem, calling it "one small segment of the market" rather than a sign of broader trouble.

The numbers arrive at a pivotal moment. Sky's £1.6B acquisition of ITV's networks business is expected to close around mid-2027, and once it does, ITV Studios will be spun off as a separately listed public company. Sky has committed to keeping two distinct editorial voices for news, maintaining ITV News as a separate operation after the takeover.

For ITV Studios, that means life as an independent production business — selling shows to whoever will buy them, with no parent network guaranteed to commission its work. The company is already pushing further into making shows for streaming platforms and building up Zoo 55, its digital content arm. Two high-profile streamer titles are set to deliver in the second half of 2026: The Gentlemen Season 2 for Netflix and Guilty Creatures for Apple TV+, both produced through ITV Studios-owned production companies.

The question hanging over the spin-off is whether a buyer might step in before ITV Studios ever reaches the stock market. McCall refused to comment on whether the studio would seek a buyer once independent. Banijay, the European production giant, had been floated as a possible suitor, but its CEO recently downplayed the idea — Banijay is in the process of merging with All3Media, another major production group.

McCall pitched the studio's prospects to investors in confident terms, describing ITV Studios as having "terrific competitive advantages" and "extraordinary IP." She said shareholders are "hugely supportive" of the plan to list it as a pure-play studios business — one that produces and sells content rather than also owning broadcast channels.

ITV also announced a £100M share buyback for shareholders, to be completed before the Sky deal closes. Meanwhile, the networks business that Sky is buying delivered strong profits in H1 2026, largely driven by World Cup viewership. That performance will belong to Sky's ledger once the deal completes.

For the crews, writers' rooms and production teams working under ITV Studios' dozens of labels across scripted, unscripted and non-English-language content, the H1 numbers are a mixed picture: revenue is growing overall, but the pullback from free-to-air buyers in the US and abroad means fewer commissions from the traditional broadcast sector. Where those projects land next — streamers, digital, or the open market — is where the studio is now placing its bets.