Netflix delivered fourth-quarter results that
largely beat Wall Street estimates but issued a cautious forecast for the months ahead, citing higher program spending and the cost of closing its deal with Warner Bros. Discovery Inc.
The company plans to increase spending on films and TV shows by 10% in 2026 and forecasts earnings of 76 cents a share for the current quarter, below Wall Street estimates of 82 cents.
Netflix is buying Warner Bros. to obtain one of the richest film and TV libraries in the world, and expects to raise prices in 2026 and predicts ad sales will double this year from $1.5 billion in 2025.