5 Must-Read Analyst Questions From Netflix's Q4 Earnings Call

Netflix’s fourth quarter was marked by robust revenue growth and operating margin expansion, but the market reacted negatively, with shares falling over 5%. Management pointed to continued subscriber momentum and a growing advertising business as key drivers of the quarter. Co-CEO Gregory Peters highlighted, “We delivered 16% revenue growth, roughly 30% operating profit growth, expanding margins, growing key free cash flow, Ad sales, two and a half times in 2025.” The company also emphasized progress in global content engagement and investment in new entertainment categories like live events and gaming.

Is now the time to buy NFLX? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Netflix’s Q4 Earnings Call

• Robert Fishman (MoffettNathanson) asked about the sustainability of Netflix's long-term growth targets. Co-CEO Gregory Peters clarified that aspirations are based on organic growth and emphasized, "We still feel good about those targets."
• Steve Cahall (Wells Fargo) inquired about the acceleration in content spending. CFO Spencer Neumann explained that the year-over-year increase reflects a return to a more balanced slate and ongoing expansion into new content formats.
• Ben Swinburne (Morgan Stanley) questioned whether the Warner Bros. acquisition signals a need to address engagement stagnation. Peters responded that the deal is meant to complement core offerings rather than fix weaknesses, calling it "an accelerant to our strategy."
• Rich Greenfield (LightShed Partners) asked about the risk of becoming reliant on sports rights for advertising. Co-CEO Theodore Sarandos noted that Netflix’s event-driven approach to live sports is designed to avoid long-term dependency on leagues.
• Jason Helfstein (Oppenheimer) sought clarity on early results from phasing out the basic tier. Peters stated that positive member feedback and successful migration in the U.S. and France justified broader rollout.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) progress on the Warner Bros. and HBO acquisition and its regulatory approval, (2) the scaling of ad-supported revenue and improvements in ad technology, and (3) the impact of content spending on both engagement and margins. New product rollouts, including cloud gaming and a revamped mobile interface, will also be critical signposts for Netflix’s execution in 2026.

Netflix currently trades at $85.74, down from $87.26 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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