Netflix (NFLX) earnings Q4 2025
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netflix It said on Tuesday it had reached 325 million global paid subscribers, a new milestone for the streaming giant that last reported membership figures a year ago.
company reported fourth-quarter earnings and revenue narrowly beat Wall Street forecasts. Here’s Netflix’s performance for the period ending December 31, compared to the forecasts of analysts surveyed by LSEG:
- Earnings per share: 55 cents versus 56 cents, est.
- Revenues: Estimated $12.05 billion and $11.97 billion
Net income in the fourth quarter was $2.42 billion, or 56 cents per share, compared to $1.87 billion, or 43 cents per share, in the same period a year ago.
Netflix said revenue in the period increased 18% year-on-year due to membership growth, higher subscription pricing and increased advertising revenue. Netflix has focused on growing its ad-supported membership tier in recent years.
Netflix launched its ad-supported option in late 2022. It said Tuesday that 2025 ad revenue is more than 2.5 times higher than 2024, to more than $1.5 billion.
The company said it expects overall 2026 revenue to range between $50.7 billion and $51.7 billion, driven by increases in membership and pricing as well as “roughly doubling of advertising revenue in 2026” compared to the prior year.
During Tuesday’s earnings call with investors, Netflix leaders noted what they described as heated competition among industry rivals to gain subscribers and increase profitability.
“As we look to ’26, we’re focusing on evolving our core business, you know, and we’re doing that by increasing the variety and quality of our TV series and movies,” co-CEO Ted Sarandos said.
Still, Netflix’s shares fell more than 4% in after-market trading Tuesday.
Netflix’s report made comparisons with: Wall Street Journal’s April report It outlined ambitious internal financial targets at the broadcaster. By these high standards, Netflix’s growth has fallen short.
But co-CEO Greg Peters said Tuesday that internal targets are considered “long-term goals” and should not be confused with forecasts.
“However, these targets are based on an organic process,” Peters added, noting that they do not take into account the impact of mergers and acquisitions.
WBD deal update
Netflix’s quarterly report, Warner Bros. It provides background to the proposed acquisition of Discovery’s broadcast and film studio assets. The company’s announcement in December streamer HBO Max and Warner Bros. said it agreed to buy the movie studio for $27.75 per WBD share, or an equity value of $72 billion.
Earlier Tuesday, Netflix changed its offer to all cash. The company said Tuesday it would pause share buybacks to finance the acquisition.
In its letter to shareholders, Netflix said it believed the transaction “will allow us to accelerate our business strategy.”
Netflix, Warner Bros. said.’ The library, development and intellectual property will allow for increased content selection for members, and HBO Max will help “deliver more personalized and flexible subscription options.”
But the proposed acquisition sent a shock to the market as the streaming giant has long steered clear of industry consolidation and mega-deals. The company’s shares have fallen nearly 30% since October, when Netflix was first rumored to be interested in the assets.
It cannot be said that the potential purchase is smooth either. Shortly after announcing the deal with Netflix, Paramount Skydance launched a hostile effort to acquire the entirety of WBD. Lawmakers and industry insiders have also raised questions about whether the Netflix deal will receive the necessary regulatory approvals.
“We’re working really hard to complete the acquisition of Warner Bros. Studios and HBO, which we see as a strategic accelerator,” Sarandos said during Tuesday’s call. “And we do all of this while pursuing and sustaining healthy growth.”
Netflix has started the regulatory process, Sarandos said, adding that the company is confident it can win regulatory approval “because this deal is pro-consumer, pro-innovation, pro-worker.”
The company has repeatedly argued that the combination will preserve jobs at a time when layoffs are being reported extensively in the media. On Tuesday, Sarandos announced that Warner Bros. He said their presence would enable Netflix to add businesses that were not currently available.
“We’re going to need these teams, these people with extensive experience and expertise. We want them to stay and run these businesses,” Sarandos said. he said. “So we’re not narrowing down content creation in this process, we’re broadening it.”
Sarandos and Peters discussed the high level of competition in the media industry, which they said spans platforms from traditional TV to social media platforms like YouTube.
Proving that Netflix is a small part of a broader competitive landscape is likely to be key to Netflix’s argument against antitrust regulators, CNBC previously reported.
