Netflix Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.75%.
Did NFLX Beat Earnings? Q4 2025 Results
Netflix closed out fiscal 2025 on a high note, reporting Q4 earnings per share of $0.56 against a consensus estimate of $0.55, a beat of 1.82%, while revenue of $12.05 billion edged past the $11.97 billion estimate and grew 17.6% year over year. The quarter's strength was underpinned by a combination of membership growth past 325 million paid subscribers, continued pricing power, and ad revenue that more than doubled for the full year to over $1.50 billion, reflecting the rapid maturation of Netflix's still-young advertising business. For <a href="https://247wallst.com/investing/2026/01/15/what-im-watching-for-in-netflixs-earnings-report/">those watching closely</a>, the results validated key growth levers heading into a transformative year shaped by the pending all-cash acquisition of Warner Bros. at $27.75 per share. Looking ahead, Netflix guided 2026 revenue of $50.70 billion to $51.70 billion, representing 12% to 14% growth, with operating margin expanding to 31.5% and free cash flow expected near $11.00 billion, even as share buybacks pause to fund the deal.
- Membership growth exceeding 325M paid memberships
- Higher pricing across plans
- Ad revenue grew more than 2.5x to over $1.5B in 2025
- Strong Q4 branded content slate driving 9% YoY increase in originals viewing
- US TV time share reached all-time high of 9.0% in December
- 96 billion hours watched in H2 2025, up 2% YoY
Forward Guidance & Outlook
For 2026, Netflix forecasts revenue of $50.7B–$51.7B, representing 12%–14% year-over-year growth (11%–13% FX-neutral), driven by membership and pricing increases plus a projected rough doubling of ad revenue. The company is targeting a 2026 operating margin of 31.5%, up from 29.5% in 2025, which includes approximately $275M in acquisition-related expenses. Content amortization growth is expected at ~10%, weighted toward H1 2026. Free cash flow is expected at roughly $11B. For Q1 2026, Netflix guides revenue of $12.157B (+15.3% YoY), operating income of $3.906B (32.1% margin), net income of $3.264B, and diluted EPS of $0.76.
NFLX YoY Financials
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Figures from SEC filings and company reports. Not investment advice.