Netflix reported fourth-quarter revenue of $12.1 billion, narrowly surpassing consensus estimates of $11.97 billion and representing a 17 percent year-over-year increase. Adjusted earnings per share came in at $0.56, just above the $0.55 Wall Street target. These results mark a rebound from the prior quarter’s shortfall, driven by modest pricing increases and stable subscription growth, and reinforce the company’s operating leverage as content investments begin to translate into higher margins.

The streaming giant crossed 325 million global subscribers during the quarter, up from 300 million at year-end 2024. Nielsen data shows a 10 percent jump in monthly viewership for December, fueled by the final season of "Stranger Things," which alone generated 15 billion viewing minutes. The company also expanded its content slate with two NFL games on Christmas Day and a third installment of the "Knives Out" film series, contributing to its lowest churn rate—under 2 percent—among paid streaming services in the U.S.

Netflix increased its pursuit of Warner Bros. Discovery’s studio and streaming business to an $82.7 billion all-cash offer at $27.75 per share, amending its merger agreement to accelerate the shareholder vote. To fund the transaction, the company secured a $59 billion bridge loan commitment in early December and expanded it by $8.2 billion following the bid revision. Management expects the acquisition to add hallmark franchises—"Game of Thrones," "Harry Potter," and DC superheroes—to its library and to drive personalized subscription tiers, including integration of HBO Max content.

Despite beating Q4 forecasts, Netflix shares fell about 4 percent in after-hours trading as investors weighed the company’s guidance and acquisition risks. For full-year 2026, Netflix projects revenue between $50.7 billion and $51.7 billion, slightly above analyst models, with ad revenue anticipated to roughly double. The market will closely watch first-quarter EPS guidance and content spend plans—Netflix signaled a 10 percent increase in production budgets—to assess whether the strategic pivot toward higher-margin growth and M&A will sustain long-term shareholder value.