Netflix reported total streaming revenue of $45.18 billion for the full year 2025, a 16 percent increase over 2024. Operating income climbed 28 percent to $13.33 billion, while net income rose 26 percent to nearly $11 billion. The company’s Asia-Pacific segment led international expansion, delivering $5.35 billion in revenue (up 21 percent), and cost of revenue grew just 11 percent to $23.28 billion, reflecting disciplined expense management. Meanwhile, Netflix’s advertising business more than doubled in 2025 and is projected to roughly double again by 2026, underscoring a fast-growing revenue stream beyond subscription fees.

As Netflix shares dipped below key psychological levels in early 2026, the company traded at a trailing price-to-earnings ratio of 33.69×. In response to the pullback, Phillip Securities raised its rating on Netflix from Sell to Accumulate and lifted its 12-month price target from 95 to 100, citing Netflix’s structural leadership in video-on-demand and strong pricing power. The upgrade reflects confidence that the recent share-price weakness presents a discounted entry point, supported by robust bottom-line growth and improving margins across both subscription and advertising segments.

Netflix’s proposed acquisition of Warner Bros. Discovery remains under regulatory review, with the deal valued at approximately $82.7 billion. Under the amended agreement, the transaction will be an all-cash offer, designed to simplify deal structure, provide greater certainty of value for Warner Bros. Discovery stockholders, and accelerate a shareholder vote scheduled by April 2026. Upon closing, the combined entity would unify Netflix’s 300 million subscribers with Warner Bros.’ 128 million HBO Max subscribers, creating a streaming powerhouse with enhanced content scale and global reach.