Overview
- Netflix topped Q4 expectations with $12.05 billion in revenue and $0.56 in EPS, ending 2025 with about 325 million paid subscribers.
- Guidance calls for 2026 revenue of $50.7 billion to $51.7 billion (12%–14% growth) and roughly a 31.5% operating margin, with management flagging modestly faster expense growth.
- The advertising business generated roughly $1.5 billion in 2025, and management says it will roughly double this year as Wedbush projects at least $3 billion and reiterates an Outperform rating with a $115 target.
- Investors continue to assess Netflix’s increased all-cash offer for Warner Bros. Discovery at $27.75 per share (about $82.7 billion including assumed debt), with concerns over price, integration, approvals, and a shareholder vote expected in April.
- Shares have fallen about 22.7% over three months, touched a 52-week low near $83, and sit roughly 36% below mid‑2025 highs despite mixed-to-positive analyst coverage and recent upgrades.