Streaming giant Netflix Inc (NASDAQ:NFLX) reported fourth-quarter financial results Tuesday after market close.
Here are the highlights.
Netflix Q4 Earnings Highlights
Netflix reported fourth-quarter revenue of $12.05 billion, up 17.6% from last year's fourth quarter. The revenue total beat a Street consensus estimate of $11.97 billion, according to data from Benzinga Pro.
Netflix reported 56 cents in earnings per share for the fourth quarter, beating a Street consensus estimate of 55 cents per share.
The company said higher pricing, membership growth and increased advertising revenue led to the higher revenue for the quarter.
While Netflix no longer breaks out its subscriber figures quarterly, the company said it passed the 325 million paid subscriber milestone during the fourth quarter.
The company's revenue by regional segment was as follows:
- UCAN: $5.34 billion, +18% year-over-year
- EMEA: $3.87 billion, +18% year-over-year
- LATAM: $1.42 billion, +15% year-over-year
- APAC: $1.42 billion, +17% year-over-year
Netflix had revenue of $45.2 billion for the full fiscal year, up 16% year-over-year. The company said it met or exceeded all fiscal year objectives.
What's Next for Netflix
The company said its focused on several items for 2026, including:
- Improving our core business
- Building out newer initiatives like live
- Expanding into more content categories like video podcasts
- Sustaining healthy growth
"With over 325M paid memberships, we're now serving an audience approaching one billion people globally. Our aim is to delight and satisfy all of them by providing an amazing variety of series, films, and games," the company said.
Netflix highlighted its 2026 lineup, which includes the return of several fan favorites like "Bridgerton" and "One Piece," along with some new scripted series and movies.
Warner Bros. Discovery Acquisition Update
Netflix highlighted its plans to acquire media company Warner Bros. Discovery (NASDAQ:WBD) in its earnings release. The company announced Tuesday that it amended the terms of the deal to be an all-cash transaction valuing the company at $27.75 per share.
The company said the revised offer should expedite the timeline and provide greater value to shareholders.
"We believe our proposed purchase of Warner Bros. will allow us to accelerate our business strategy," the company said.
Netflix highlighted Warner Bros. library, development and IP and the addition of HBO Max as two keys to the acquisition.
"Netflix and Warner Bros. are highly complementary businesses and together we'll be able to offer more opportunities to creators and strengthen the entire entertainment industry."
Netflix Q1, 2026 Guidance
Netflix is guiding for first-quarter revenue of $12.16 billion versus a Street consensus estimate of $12.19 billion according to data from Benzinga Pro. The company sees first-quarter earnings per share of 76 cents, below a consensus estimate of 81 cents per share.
For fiscal 2026, Netflix is guiding for revenue of $50.70 billion to $51.70 billion.
The company said it expects higher membership prices and the doubling of advertising revenue from 2026 to 2025 to contribute to the higher revenue for fiscal 2026.
Netflix Stock Price Action
Netflix stock is down 4.8% to $82.88 in after-hours trading Tuesday versus a 52-week trading range of $82.11 to $134.12. Heading into the fourth-quarter earnings, Netflix stock was up less than 2% over the last 52 weeks.
Photo: Emre Akkoyun / Shutterstock.com
