Key Points
- Netflix beat revenue and earnings estimates for Q4 2025, reporting about $12.1 billion in revenue.
- The company’s global subscriber count reached 325 million, up about 25 million from a year earlier.
- Shares fell on investor caution tied to 2026 guidance and Netflix’s costly Warner Bros. Discovery acquisition effort.
Netflix reported fourth-quarter revenue of about $12.1 billion, slightly above Wall Street expectations for the October-December 2025 period, and announced its paid subscriber base climbed to 325 million worldwide, driven by strong content viewership and growth in ad-supported plans. Despite beating revenue and earnings per share forecasts, Netflix’s stock fell more than 4% in after-hours trading as investors reacted to its future guidance and heavy spending linked to its bid for Warner Bros. Discovery and broader strategic moves.
Netflix added roughly 25 million new subscribers in the quarter, lifting its global total from about 300 million at the end of 2024. Popular shows — including the final season of blockbuster series “Stranger Things” — and broadcasting of two NFL games helped boost viewing and attract new members. Nielsen data also showed a significant rise in monthly viewership, underlining the platform’s continued content appeal.
The company’s adjusted earnings of $0.56 per share slightly beat forecasts, reinforcing a positive current performance even as concerns around the outlook weighed on sentiment. Netflix also highlighted the expansion of its advertising revenue stream, which more than doubled in 2025 and is expected to grow further in 2026 with new formats and interactive ad features.
Netflix offered full-year 2026 revenue guidance of $50.7 billion to $51.7 billion, with a key assumption that advertising income will nearly double to about $3 billion. The forecast reflects management’s confidence in continued subscriber and monetisation growth, although the lower-end projection was seen as mixed relative to some analyst estimates.
Investors have been closely watching Netflix’s $82.7 billion offer to acquire Warner Bros. Discovery in cash — a strategic bid to deepen its content library with major franchises and studio assets. Netflix amended the pact to an all-cash deal to expedite shareholder approval amid competition from Paramount Skydance’s rival proposal. While the acquisition could broaden Netflix’s content offerings, its cost and regulatory hurdles have raised investor caution.
The company is also expanding its content portfolio by investing in live events, video podcasts and overseas infrastructure, particularly in the UK and Asia, to fuel future growth. Co-CEOs have stressed this diversified approach aims to build Netflix into a more resilient entertainment platform across formats and markets.
Despite strong subscriber gains and revenue beats, some analysts and investors reacted to the stock’s decline by pointing to heightened costs tied to the Warner Bros bid and potential competitive pressures in streaming and entertainment. This reflects broader market sensitivity to big strategic plays that could affect near-term profitability.
