Netflix EPS Beats by 1.8%, Q4 Revenue Hits $12.05B, Shares Down 8.6%
Netflix shares have dropped 8.6% since its Q4 earnings beat, which saw EPS of $0.56 (+30% YoY) and revenue of $12.05 billion (+18% YoY). The streaming giant topped 325 million paid memberships, grew operating income 30% to $2.96 billion, and saw advertising revenues exceed $1.5 billion for 2025.
1. Share Decline Since Earnings
Netflix shares have declined about 8.6% since the Q4 2025 earnings release, underperforming the S&P 500 over the past month as investors weigh growth prospects ahead of the next report.
2. Q4 Financial and Operational Results
In Q4 2025, Netflix reported EPS of $0.56 (+30.2% YoY) and revenue of $12.05 billion (+18% YoY, +17% FX-neutral), with operating income rising 30% to $2.96 billion and margin expanding to 24.5% despite $60 million in loan-related interest costs.
3. Subscriber Milestones and Advertising Growth
Paid memberships surpassed 325 million globally, driving second-half 2025 viewing of 96 billion hours (+2% YoY), while advertising revenue more than doubled to over $1.5 billion, supported by new AI ad-creation tools and automated workflows.
4. Participation in Licensing Expo
Netflix will join major brands at the Licensing Expo in Las Vegas from May 19–21, showcasing its intellectual property alongside global partners in a market valued at $369.9 billion in 2025 and attended by over 12,000 industry professionals.