KEY POINT
- Netflix is expected to report fourth quarter earnings of 55 cents per share, a 28% increase year-over-year, and revenue of $12 billion, up 17% from the same quarter in 2024.
- Investor concerns persist over slowing subscriber growth and potential risks tied to the proposed Warner Bros. acquisition.
- Analysts note that international expansion and an advertising partnership with Amazon may support revenue in 2026 despite near-term challenges.
LOS GATOS, Calif., – Netflix Inc. is set to report fourth quarter earnings after the market closes Tuesday, offering investors a rare opportunity to focus on the streaming giant’s financial fundamentals amid its high profile $82.7 billion bid for Warner Bros. Discovery Inc.
The results arrive at a time of heightened scrutiny over subscriber growth and the long-term sustainability of Netflix’s expansion.
Netflix’s earnings announcement provides a lens into the company’s operational health beyond the headline grabbing merger bid.
After shares fell 29% since its previous earnings report on Oct. 21, investors are watching closely for confirmation that Netflix’s core business remains resilient, even as it seeks to absorb Warner Bros.’s studio and streaming operations.
The streaming service previously proposed a mixed cash and stock deal for Warner Bros. Discovery. On Jan. 20, Netflix sweetened its offer, converting it to an all-cash agreement.
Shares of Netflix rose slightly in premarket trading, while Warner Bros. slipped. The merger bid has intensified debate on Wall Street over Netflix’s financial capacity and strategic focus.
Netflix’s subscriber growth has slowed in recent quarters, raising questions about the sustainability of its revenue model.
Analysts forecast continued deceleration in revenue growth over the next three quarters before growth resumes in 2027, according to Bloomberg data.
“Investors may see the earnings report as a reminder of Netflix’s underlying fundamentals,” said Daniel Kurnos, an analyst at Benchmark Co.
“A solid outlook for revenue and operating income could offer a temporary pause from the ongoing merger scrutiny.”
Eric Clark, chief investment officer at Accuvest Global Advisors, said he views the recent stock pullback as overblown and expects capital to flow back into Netflix shares regardless of the merger outcome.
| Metric | Q4 2025 | Q4 2024 | YoY Change |
|---|---|---|---|
| Earnings per Share | \$0.55 | \$0.43 | +28\% |
| Revenue | \$12.0\text{B} | \$10.3\text{B} | +17\% |
| Stock Change Since Last Earnings | -29\% | N/A | N/A |
Analysts point to international expansion and digital advertising as key drivers for near-term growth. “The partnership with Amazon provides a scalable avenue for ad revenue,” Kurnos noted.
Market observers caution that the Warner Bros. acquisition introduces operational and financial risks that may dominate investor attention in the months ahead.
Netflix’s management is expected to outline guidance for 2026 revenue and operating income, offering insight into its strategic plans amid the Warner Bros. bid.
Analysts predict that international subscriber growth and advertising initiatives could offset slower domestic expansion.
Tuesday’s earnings report will test investor confidence in Netflix’s business fundamentals at a critical juncture.
While the company’s proposed $82.7 billion acquisition of Warner Bros. dominates headlines.
The financial results will provide the clearest measure yet of the streaming giant’s operational resilience and capacity for future growth.
NOTE! This report was compiled from multiple reliable sources, including official statements, press releases, and verified media coverage.