Companies /Communication Services

Netflix Inc

NASDAQ: NFLX Entertainment
$82.13
â–² $2.29 (+2.87%) today
Markets open · 11:26am ET

Q1 2026 Earnings

Reported Apr 16, 2026, 4:01pm ET · SEC source
$1.23
Miss −8.55%
EPS · est. $1.35
$12.2B
Beat +0.63%
Revenue · est. $12.2B
−11.5%
Trailing market
NFLX vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%+8%Apr 16Apr 17report 4:01pm ETearnings+1.3%−1.5%
−4%0+4%+8%Apr 16Apr 17earnings+1.3%−1.5%
NFLX −1.5%S&P 500 +1.3%
−4%0+4%+8%Apr 16Apr 17report 4:01pm ETearnings+1.5%−1.5%
−4%0+4%+8%Apr 16Apr 17earnings+1.5%−1.5%
NFLX −1.5%NASDAQ +1.5%
−5%0+5%+10%Apr 15Apr 24report 4:01pm ETearnings+1.7%−6.8%
−5%0+5%+10%Apr 15Apr 24earnings+1.7%−6.8%
NFLX −6.8%S&P 500 +1.7%
−5%0+5%+10%Apr 15Apr 24report 4:01pm ETearnings+3.7%−6.8%
−5%0+5%+10%Apr 15Apr 24earnings+3.7%−6.8%
NFLX −6.8%NASDAQ +3.7%
−9.72%
Day of report
−2.55%
Next session
−5.00%
One week
−8.20%
30 days

S&P 500 over the same 30 days: +3.32%.

Did NFLX Beat Earnings? Q1 2026 Results

Netflix delivered a mixed but largely resilient first quarter for 2026, posting revenue of $12.25 billion, a 16.2% year-over-year gain that edged past the $12.17 billion consensus by 0.63%, while earnings per share of $1.23 fell short of the $1.34 analyst estimate by 8.55%. The most consequential factor shaping the bottom line was a $2.80 billion termination fee Netflix received after walking away from its proposed Warner Bros. acquisition, a non-operating windfall that significantly inflated net income to $5.28 billion and free cash flow to $5.09 billion. Strip away that one-time item and the quarter's operational picture is more nuanced, though momentum in the advertising business remains a genuine bright spot, with the ad-supported tier accounting for over 60% of sign-ups in ads markets and advertiser count climbing 70% year over year. Looking ahead, Netflix reaffirmed full-year revenue guidance of $50.70 billion to $51.70 billion and raised its free cash flow forecast to roughly $12.50 billion, buoyed in part by the after-tax impact of the termination fee.

Key Takeaways
  • Membership growth drove revenue above forecast
  • Recent price increases have gone well, reflecting strong member value
  • Ad-supported tier represented over 60% of all Q1 sign-ups in ads countries
  • World Baseball Classic in Japan became most-watched Netflix program ever in Japan, drove largest sign-up day in the country
  • Japan was the largest contributor to member growth in Q1
  • Advertiser count grew 70% year over year to over 4,000 clients
  • $2.8B termination fee from Warner Bros. transaction recognized in interest and other income
  • Primary internal quality engagement metric reached all-time high in Q1

“Reed will always be Netflix's founder and biggest champion—he is a part of our DNA. His vision, entrepreneurship, and steadfast commitment to our values have shaped every stage of our journey and continue to shape how Ted and I lead Netflix today.”

Netflix CEO, on the earnings call

Forward Guidance & Outlook

Netflix reaffirmed its full-year 2026 revenue guidance of $50.7B-$51.7B (12%-14% growth, 11%-13% F/X neutral), driven by continued membership growth, pricing, and a projected doubling of advertising revenue. The company targets a 2026 operating margin of 31.5% based on F/X rates as of January 1, 2026, up from 29.5% in 2025. For Q2 2026, Netflix forecasts revenue of approximately $12.574B (13% growth, 12% F/X neutral) and operating margin of 32.6%. Content amortization growth is expected to peak in Q2 before decelerating to mid-to-high single digit growth in H2 2026. Year-over-year operating margin growth is expected in Q3 and Q4. Free cash flow guidance was raised to approximately $12.5B for 2026, up from $11B previously, primarily due to the after-tax impact of the Warner Bros. termination fee. Advertising revenue remains on track to reach approximately $3B in 2026, up 2x year-over-year.

NFLX YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$4.0B$8.0B$12.0B$10.5B$12.2BRevenue$5.3B$6.4BGross Profit$3.3B$4.0BOperating Income$2.9B$5.3BNet Income
$0$4.0B$8.0B$12.0BRevenueGross ProfitOperating IncomeNet Income

NFLX Revenue by Segment

UCAN (United States and Canada)
EMEA (Europe, Middle East, and Africa)
LATAM
APAC
LATAM (Latin America)
APAC (Asia-Pacific)

NFLX Revenue by Geography

North America$5.2B+14.0%
EMEA$4.0B+17.0%
Latin America$1.5B+19.0%
Asia Pacific$1.5B+20.0%

Figures from SEC filings and company reports. Not investment advice.