Netflix reported Q4 streaming revenue growth of 14% year-over-year to $9.8 billion, topping consensus by roughly $150 million. Operating margin expanded by 120 basis points to 24.6%, reflecting disciplined content spending and lower marketing costs. Net income rose 18% to $2.1 billion, translating to adjusted earnings per share growth of 20% versus the same period last year. Free cash flow for the quarter reached $1.3 billion, marking the fourth consecutive quarter of positive cash generation, as production costs normalized following pandemic-era delays.

Global paid net subscriber additions totaled 9.2 million in Q4, versus guidance of 8.5 million, driven by robust uptake in Latin America (3.1 million adds) and Asia Pacific (2.7 million adds). U.S. and Canada subs grew by 1.5 million, aided by the launch of a lower-priced ad-supported tier. Average revenue per user rose 7% year-over-year to $13.45, reflecting a 12% price increase in key markets and upweighted premium plan mix.

For full-year 2026, Netflix reiterated targets of 30–35 million net subscriber additions and mid-teens revenue growth, implying top-line of approximately $52 billion. Management forecast full-year operating margin of 25–26%, supported by ceasing legacy content investment and leveraging co-production agreements. Capex is expected to remain at roughly $3 billion, enabling steady free cash flow expansion. However, the stock trades at a forward non-GAAP P/E multiple above 30x, prompting analysts to recommend patient accumulation rather than aggressive buys at current levels.