Shares of Netflix (NASDAQ:NFLX) slid more than 5% in U.S. premarket trading on Wednesday after the streaming group released softer-than-expected forward guidance while pursuing a large acquisition of Warner Bros. Discovery (NASDAQ:WBD).
For the quarter ended December 31, Netflix reported earnings of $0.56 per diluted share on revenue of $12.05 billion, narrowly topping analysts’ forecasts of $0.55 per share on $11.97 billion in revenue. The results were supported by strong audience engagement with hit content, including the final season of “Stranger Things” and the release of “Frankenstein.”
The company said global paid memberships reached 325 million by year-end, while advertising revenue more than doubled from 2024 levels to exceed $1.5 billion.
Looking ahead, Netflix forecast first-quarter earnings of $0.76 per share on revenue of $12.16 billion, below consensus expectations of $0.81 per share and $12.19 billion, respectively.
For full-year 2026, Netflix guided to revenue of between $50.7 billion and $51.7 billion, compared with analyst forecasts of $51.03 billion. The outlook implies year-on-year growth of 12%–14%, or 11%–13% on a constant-currency basis, easing from the roughly 16% growth recorded in 2025.
The company also pointed to a decline in viewing hours for non-branded licensed content, following a period of unusually high licensing activity in 2023–2024 linked to the 148-day Writers Guild of America strike, which temporarily halted new content production.
The update comes shortly after Netflix raised its $72 billion offer for Warner Bros.’ studios and the HBO Max streaming business, aiming to strengthen its position in a bidding contest with Paramount Skydance.
In a note to clients, analysts at Jefferies described the results as “mixed” overall, adding that “[i]ncreased deal certainty” would act as a “positive catalyst” for the stock.