NETFLIX (NFLX) Company Report

The Senate Judiciary Subcommittee on Antitrust has scheduled a Feb. 3 hearing to scrutinize Netflix’s proposed $82.7 billion acquisition of Warner Bros., with co-CEO Ted Sarandos set to testify.
Senators Mike Lee and ranking member Cory Booker warn the deal could substantially lessen competition in streaming and raise serious antitrust concerns.
Regulators are focusing on control of exclusive franchises, ad-tech capabilities and viewer data, increasing the risk of extended reviews, tougher remedies or litigation that could alter the deal’s timeline and valuation.
Paramount Skydance’s hostile bid and shareholder challenge, including a court action and extension of its offer deadline to Feb. 20, add further complexity to the transaction.

Jan 26, 2026, 6:11 PM

WSJ

Netflix reports earnings beat but issues weaker 2026 guidance

NFLX

Guidance Update

Demand Weakening

Netflix fell in after-hours trading despite a narrow earnings beat, as it signaled weaker guidance for 2026 and flagged declining viewership for non-branded licensed content.
The broader market selloff drove the S&P 500 and Nasdaq into negative territory for 2026 amid geopolitical tensions, rising Treasury yields and a softer dollar, adding pressure on tech stocks including Netflix.
Investors are now focused on upcoming corporate results and President Trump’s scheduled appearance in Davos to gauge broader economic and policy implications.

Jan 21, 2026, 3:27 AM

CNBC

Netflix reports Q4 earnings; Warner Bros bid weighs on shares

NFLX

Earnings

Guidance Update

M&A

Netflix beat Q4 expectations with $12.05 B in revenue, $2.419 B in net income, over 325 M global subscribers, $0.56 EPS, and a 24.5% operating margin (down from 28.2%).
Management provided softer guidance: Q1 EPS of $0.76, Q1 revenue of $12.157 B, and full-year 2026 revenue of $50.7 B–$51.7 B, targeting a 31.5% operating margin.
Netflix suspended share buybacks to fund its $82.7 B all-cash bid for Warner Bros at $27.75 per share, incurring $275 M in deal expenses plus an earlier $60 M, heightening regulatory scrutiny.
Shares fell roughly 5% in after-hours trading amid broader risk-off moves and uncertainty around the Warner Bros deal.

Jan 21, 2026, 1:22 AM

CNBC

Netflix reports Q4 2025 results and 2026 outlook

NFLX

Earnings

Guidance Update

M&A

Netflix delivered 16% revenue growth, ~30% operating profit growth, and saw ad sales increase 2.5× in 2025; it expects ad sales to double to ~$3 billion in 2026.
For 2026, Netflix guides to $51 billion in revenue (up 14% YoY) and an operating margin of 31.5%, a 200 bps increase (250 bps ex-M&A).
The company is investing in content (series, films), ad tech enhancements, live events, video podcasts, and scaling its cloud-first gaming strategy to drive engagement.
Netflix is advancing its planned acquisition of Warner Bros. Studios and HBO as a strategic accelerant; pro forma post-close ~85% of revenues will stem from its existing core business, and it does not anticipate any change in service pricing during regulatory review.

Jan 20, 2026, 9:45 PM

Transcript

Netflix reports Q4 2025 results and outlines 2026 outlook

NFLX

Earnings

Guidance Update

M&A

Netflix delivered 16% revenue growth and ~30% operating profit growth in 2025, with ad sales up 2.5× and free cash flow expansion; the ad business is expected to double to $3 billion in 2026.
For 2026, Netflix guides $51 billion in revenue (+14% YoY), 10% content amortization growth, and 31.5% operating margin (including a 0.5 pp M&A drag), targeting 2.5 pp of margin expansion ex-M&A.
Netflix is progressing on its acquisition of Warner Bros. Studios and HBO, adding a theatrical business, TV studio, and the HBO streaming brand; it has filed its HSR notification and is confident in securing approvals, citing pro-consumer and pro-growth rationale.
Strategic investments include scaling its ad-tech stack, launching live events (200+ to date, including the World Baseball Classic and live sports), expanding video podcasts, and rolling out cloud-first TV gaming to enhance engagement and monetization.

Jan 20, 2026, 9:45 PM

Transcript

Netflix reports Q4 2025 results and announces 2026 outlook

NFLX

Earnings

Guidance Update

M&A

Netflix delivered 16% revenue growth and approximately 30% operating profit growth in 2025, while expanding margins, free cash flow and growing ad sales 2.5×; ad-supported revenue is expected to double to ~$3 billion in 2026.
Management guided 2026 revenue of $51 billion (up 14% YoY) and an operating margin of 31.5% (up 2 ppt, or ~2.5 ppt excluding M&A expenses).
Ad-supported ARM continues to narrow versus ad-free plans through enhancements to Netflix’s proprietary ad stack, expanded formats and improved fill rates, underpinning another year of ~2× ad revenue growth.
Organic growth remains centered on premium content (films, series, live events, gaming, podcasts), and Netflix is pursuing the strategic acquisition of Warner Bros. Studios and HBO as an accelerator, with HSR filed and regulators engaged.
Engagement in H2 2025 saw total view hours rise 2% YoY, with branded originals viewing up 9%, contributing to best-in-industry retention and customer satisfaction at all-time highs.

Jan 20, 2026, 9:45 PM

Transcript

Netflix reports Q4 2025 earnings and 2026 guidance

NFLX

Earnings

Guidance Update

M&A

Netflix delivered $45.2 B of revenue in 2025 (+16% YoY) with a 29.5% operating margin, and in Q4 2025 posted $12.05 B in revenue (+18% YoY) and $2.96 B in operating income (+30% YoY).
The company surpassed 325 M paid memberships in Q4 and saw view hours rise 2% in H2 2025, led by a 9% increase in branded originals.
For 2026, Netflix forecasts $50.7 B–$51.7 B in revenue (12%–14% YoY growth), targets a 31.5% operating margin, and expects to double ad revenue.
Strategic priorities include enhancing core series and films, expanding the ads business, launching live events (e.g., World Baseball Classic), video podcasts, and scaling a cloud-first gaming strategy.
Netflix is advancing its all-cash acquisition of Warner Bros. to broaden its content library and subscription offerings.

Jan 20, 2026, 9:07 PM

8-K

Netflix’s all-cash offer accepted by Warner Bros. Discovery

NFLX

M&A

Proxy Vote Outcomes

Netflix amended its agreement with Warner Bros. Discovery, offering $27.75 in cash per share, replacing the prior $23.25 cash + $4.50 stock proposal
Warner Bros. Discovery’s board unanimously accepted the all-cash bid and filed a preliminary proxy to aim for a shareholder vote by April 2026
The all-cash structure is intended to provide enhanced certainty amid Netflix’s stock volatility and respond to Paramount Skydance’s hostile pursuit
Warner’s updated disclosures show declining revenue and earnings in the cable unit but stronger-than-expected cash flow, which Paramount has highlighted in its lawsuit and proxy fight

Jan 20, 2026, 12:52 PM

Bloomberg

Netflix amends Warner Bros. Discovery deal to all-cash transaction

NFLX

M&A

Netflix and Warner Bros. Discovery amended their merger agreement to an all-cash transaction.
The deal retains a $27.75 per share valuation for WBD stockholders, plus shares in Discovery Global after its separation.
The transaction will be funded through cash on hand, credit facilities and committed financing, leveraging Netflix’s strong cash flow.
WBD has filed a preliminary proxy with the SEC and expects a stockholder vote by April 2026.

Jan 20, 2026, 12:05 PM

Press Release

Netflix and Warner Bros. Discovery amend merger to all-cash deal

NFLX

M&A

Netflix and Warner Bros. Discovery revised their merger agreement to an all-cash transaction at $27.75 per WBD share, with WBD stockholders also receiving the value of Discovery Global shares; the deal will be financed through cash on hand, available credit facilities and committed financing.
The all-cash structure delivers greater value certainty for WBD stockholders and accelerates the timeline, with a stockholder vote expected by April 2026; WBD filed its preliminary proxy statement today.
Netflix’s strong cash flow underpins the revised structure while preserving a healthy balance sheet and maintaining investment-grade ratings.
WBD will separate Warner Bros. and Discovery Global into two standalone public companies 6–9 months before the closing of the Netflix transaction.