Netflix (NASDAQ:NFLX) delivered an acceptable Q4, modestly beating expectations on both revenue and EPS. Revenue growth across regions remained solid in the mid to high teens. However, it is important to consider year over year results benefited meaningfully from price increases and favorable foreign exchange tailwinds.
The advertising platform continued to gain traction, surpassing $1.5 billion in revenue in 2025. But ad revenue guidance for 2026 appears underwhelming. Management is calling for roughly 2x growth in advertising versus the 2.5x achieved in 2025. This is disappointing given the platform remains in its early stages, where growth should still be more exponential. The potential acquisition of Warner Bros. Discovery will pause share repurchases but should strengthen Netflix’s long term competitive position by securing valuable content and digital assets.
For more details, key highlights, and commentary, check out the high-level earnings summary.
