Netflix Exits $2.8B Warner Bid, Shares Rally Over 30% and EPS Estimates Rise
Netflix shares have surged over 30% since late February after exiting its $2.8B Warner Bros. Discovery bid, with analysts raising 2026 net income per share estimates by 2.5%. Traders are pricing 94% chance of live events discussion and 90% odds of competition and acquisition updates on Netflix’s earnings call.
1. Stock Rally After Warner Bid Exit
Since late February, Netflix shares have climbed over 30% after the company withdrew its $2.8 billion pursuit of Warner Bros. Discovery, reversing a roughly 20% decline from November and reaching their highest level since December.
2. Analyst Upgrades for 2026 Estimates
Consensus net income per share forecasts for 2026 have risen by 2.5% over the past month, supported by the $2.8 billion termination fee and recent subscription price increases, while revenue is projected to grow about 13.6% next year.
3. Earnings Call Focus Areas
Market traders are assigning a 94% probability that Netflix management will discuss live events and a 90% probability of updates on competition and acquisitions during the upcoming earnings call, with pricing, gaming and partnership initiatives also expected to feature prominently.