Prime Highlight
- Netflix reached 325 million global paid subscribers, marking the first membership update in a year and underscoring its continued scale despite fierce streaming competition.
- The company is betting heavily on its ad-supported plan and original content to drive long-term growth, even as investors reacted cautiously to future targets and acquisition plans.
Key Facts
- Q4 earnings beat expectations, with earnings of 56 cents per share on $12.05 billion in revenue, and net income rising to $2.42 billion from $1.87 billion a year earlier.
- Ad revenue more than doubled in 2025, surpassing $1.5 billion, and Netflix forecasts 2026 revenue of $50.7–$51.7 billion, driven by price increases, subscriber growth, and advertising.
Background
Netflix said on Tuesday that it has reached 325 million global paid subscribers, marking a major milestone for the streaming company. This is the first time Netflix has shared updated membership numbers in a year.
The company reported fourth-quarter results that narrowly beat Wall Street expectations. Earnings stood at 56 cents per share, slightly above estimates of 55 cents. Revenue came in at $12.05 billion, higher than the expected $11.97 billion. Net income rose to $2.42 billion, compared to $1.87 billion a year earlier.
Netflix said revenue increased 18% year-on-year, supported by higher subscription prices, steady member growth and rising ad income. The company has focused strongly on its ad-supported plan, launched in late 2022. Netflix said its ad revenue more than doubled in 2025 to cross $1.5 billion.
Looking ahead, Netflix expects its 2026 revenue to fall between $50.7 billion and $51.7 billion. The company expects membership growth, price hikes and a near doubling of ad revenue to drive future gains.
Despite the positive results, Netflix shares fell more than 4% in after-hours trading. Investors appeared cautious, especially after earlier reports suggested the company had set more aggressive internal targets.
On the earnings call, co-CEOs Ted Sarandos and Greg Peters said competition in the streaming space remains intense. They said Netflix plans to stay ahead by improving the quality and range of its shows and films.
The results also come amid Netflix’s proposed acquisition of Warner Bros. Discovery’s streaming and studio assets. Netflix recently revised the offer to an all-cash deal and paused share buybacks to support the purchase. The company said it has begun the regulatory process and believes the deal will benefit consumers and creators.
Netflix leaders said they remain confident about long-term growth despite market pressure and industry rivalry.
