Netflix Q1 Buybacks Slump to $1.3B and 2026 Margins Fall Short
Netflix repurchased $1.3 billion of stock in Q1 versus a $2.3 billion quarterly average, leaving $6.8 billion under authorization and maintaining its capital allocation plan unchanged. It held 2026 revenue guidance at $50.7 billion, set operating margin at 31.5% below analyst expectations, and announced chairman Reed Hastings’ departure.
1. Share Repurchase Slowdown
Netflix repurchased $1.3 billion of its stock in the first quarter, down from a $2.3 billion quarterly average in 2025. With $6.8 billion still available under its share authorization, management opted not to accelerate buybacks despite investor expectations after canceling the Warner Bros. Discovery deal.
2. Guidance and Margin Shortfall
The company maintained full-year 2026 revenue guidance at $50.7 billion and projected an operating margin of 31.5%, falling short of the 32% analysts had modeled. This margin outlook reflects higher content amortization costs and suggests pressure on profitability.
3. Leadership Transition
Chairman Reed Hastings announced he will step down, ending his tenure as co-founder and long-standing leader. His departure raises questions about strategic direction as Netflix seeks to prove growth in advertising and justify its valuation.