Guidance
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NFLX
FY2025 Q4
Improving
Netflix, Inc. earnings call
Buzzberg read
2026 revenue to grow 14% to $51 billion
Netflix reported a strong Q4 2025 performance and provided upbeat 2026 guidance with 14% revenue growth and margin expansion. Management highlighted the pending Warner Bros. Discovery acquisition as a strategic accelerant, while also discussing content licensing deals with Sony, Universal, and Paramount, and expansion into live events, video podcasts, and cloud gaming. 2026 revenue guidance of $51B (14% YoY) and operating margin target of 31.5%, up 2 points.
Buzzberg read 2026 revenue to grow 14% to $51 billion Netflix reported a strong Q4 2025 performance and provided upbeat 2026 guidance with 14% revenue growth and margin expansion. Management highlighted the pending Warner Bros. Discovery acquisition as a strategic accelerant, while also discussing content licensing deals with Sony, Universal, and Paramount, and expansion into live events, video podcasts, and cloud gaming. 2026 revenue guidance of $51B (14% YoY) and operating margin target of 31.5%, up 2 points. Read full analysisCollapse analysis
Netflix reported a strong Q4 2025 performance and provided upbeat 2026 guidance with 14% revenue growth and margin expansion. Management highlighted the pending Warner Bros. Discovery acquisition as a strategic accelerant, while also discussing content licensing deals with Sony, Universal, and Paramount, and expansion into live events, video podcasts, and cloud gaming. 2026 revenue guidance of $51B (14% YoY) and operating margin target of 31.5%, up 2 points.
- Ad revenue expected to roughly double to ~$3B in 2026.
- Acquisition of Warner Bros. Discovery positioned as pro-competitive and a core strategy accelerator.
- New content licensing partnerships: Sony (global pay-one-movie), Universal (extended to live-action), and Paramount.
Revenue$12.0508B+5% QoQ
EPS$0.56-5% QoQ
Gross margin45.87%Reported
Operating margin24.54%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Advertising
Ad revenue expected to roughly double to $3 billion in 2026
Margins
Operating margin target 31.5%, up 2 points
Show 3 more callouts
M&A
Warner Bros. acquisition is an accelerant, not needed for growth
Engagement
Engagement quality at all-time high, churn improved
Content Strategy
Live events are small portion but drive outsized impact
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $12.0508B | +5% QoQ |
| EPS | $0.56 | -5% QoQ |
| Gross margin | 45.87% | Reported |
| Operating margin | 24.54% | Reported |
| Free cash flow | $1.8723B | -30% QoQ |
| Capex | $0.2393B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Operating margin | FY2026 | 31.5% | 31.5% | Guided |
| Revenue | FY2026 | $51B | $51B | Guided |
| RevenueAD | FY2026 | $3B | $3B | Guided |
AI, capex & demand read
Management read
Confident
Management repeatedly expressed confidence in organic growth, expanding margins, and the strategic value of the Warner Bros. acquisition, citing strong performance and large addressable markets.
all 11 named companies below
Companiesreturns since call
Partners
Partners
Ted Sarandos
Sony is a content licensing partner for films.
Evidence
“We've got some new license deals in place with Sony. There's a first-of-its-kind global pay-one-movie deal.”
Partners
Ted Sarandos
Netflix extended its licensing agreement with Universal (Comcast) to include live-action films.
Evidence
“We've expanded our universal licensing deal that already included some very successful animation films to include live action films.”
Partners
Ted Sarandos
New licensing deal with Paramount expands Netflix's content library globally.
Evidence
“We have a new slate of licensed titles from Paramount, which is going to bring a lot of new series and television shows that Netflix has never had around the world.”
Partners
Ted Sarandos
Spotify is a partner providing video podcast content for Netflix.
Evidence
“We've launched new ones from Spotify and The Ringer, iHeartMedia, Barstool.”
Competitors
Competitors
Ted Sarandos
Historical context; no current operational impact.
Evidence
“years ago when we moved from DVD by mail into streaming, we were in a heated battle with Walmart for that DVD business.”
Competitors
Ted Sarandos
Netflix views YouTube as a direct competitor across multiple dimensions.
Evidence
“YouTube has just surpassed BBC in monthly average audience, according to Barb, that publishes these figures in the UK.”
Competitors
Ted Sarandos
Netflix acknowledges Amazon's competitive position in content ownership.
Evidence
“Amazon owns MGM.”
Competitors
Netflix sees Instagram (Meta) as an emerging competitor for attention and content.
Ted SarandosSupply chain
Supply chain
Netflix is very positive on the acquisition, seeing it as a strategic accelerant and expecting regulatory approval.
Ted SarandosMethodology & coverage
Management-only analysis. All 11 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.