Overview
- Netflix reported fourth-quarter revenue growth of 17% year over year.
- Management said advertising revenue grew 2.5 times in 2025 to more than $1.5 billion.
- Co-CEO Greg Peters told investors the ad business is expected to roughly double in 2026 to about $3 billion.
- The company guided to a 31.5% operating margin in 2026, up from a trailing 12-month margin of 29.6%.
- Shares have fallen sharply, trading nearly 38% below their 52-week high, as commentary highlights valuation concerns even with forecasts for strong multi-year earnings growth.