Q1 26 EPS
$1.23
Q1 26 Revenue
$12.25B
BEAT +0.63%
Est. $12.17B
vs S&P Since Q1 26
-16.2%
TRAILING MARKET
NFLX -14.8% vs S&P +1.5%
Market Reaction
Did NFLX Beat Earnings? Q1 2026 Results
Netflix delivered a mixed but largely resilient first quarter for 2026, posting revenue of $12.25 billion, a 16.2% year-over-year gain that edged past the $12.17 billion consensus by 0.63%, while earnings per share of $1.23 fell short of the $1.34 an… Read more Netflix delivered a mixed but largely resilient first quarter for 2026, posting revenue of $12.25 billion, a 16.2% year-over-year gain that edged past the $12.17 billion consensus by 0.63%, while earnings per share of $1.23 fell short of the $1.34 analyst estimate by 8.55%. The most consequential factor shaping the bottom line was a $2.80 billion termination fee Netflix received after walking away from its proposed Warner Bros. Acquisition, a non-operating windfall that significantly inflated net income to $5.28 billion and free cash flow to $5.09 billion. Strip away that one-time item and the quarter's operational picture is more nuanced, though momentum in the advertising business remains a genuine bright spot, with the ad-supported tier accounting for over 60% of sign-ups in ads markets and advertiser count climbing 70% year over year. Looking ahead, Netflix reaffirmed full-year revenue guidance of $50.70 billion to $51.70 billion and raised its free cash flow forecast to roughly $12.50 billion, buoyed in part by the after-tax impact of the termination fee.
Key Takeaways
- • Membership growth drove revenue above forecast
- • Recent price increases have gone well, reflecting strong member value
- • Ad-supported tier represented over 60% of all Q1 sign-ups in ads countries
- • World Baseball Classic in Japan became most-watched Netflix program ever in Japan, drove largest sign-up day in the country
- • Japan was the largest contributor to member growth in Q1
- • Advertiser count grew 70% year over year to over 4,000 clients
- • $2.8B termination fee from Warner Bros. transaction recognized in interest and other income
- • Primary internal quality engagement metric reached all-time high in Q1
NFLX Forward Guidance & Outlook
Netflix reaffirmed its full-year 2026 revenue guidance of $50.7B-$51.7B (12%-14% growth, 11%-13% F/X neutral), driven by continued membership growth, pricing, and a projected doubling of advertising revenue. The company targets a 2026 operating margin of 31.5% based on F/X rates as of January 1, 2026, up from 29.5% in 2025. For Q2 2026, Netflix forecasts revenue of approximately $12.574B (13% growth, 12% F/X neutral) and operating margin of 32.6%. Content amortization growth is expected to peak in Q2 before decelerating to mid-to-high single digit growth in H2 2026. Year-over-year operating margin growth is expected in Q3 and Q4. Free cash flow guidance was raised to approximately $12.5B for 2026, up from $11B previously, primarily due to the after-tax impact of the Warner Bros. termination fee. Advertising revenue remains on track to reach approximately $3B in 2026, up 2x year-over-year.
NFLX YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
NFLX Revenue by Segment
With YoY comparisons, source: SEC Filings
NFLX Revenue by Geography
With YoY comparisons, source: SEC Filings
“Reed will always be Netflix's founder and biggest champion—he is a part of our DNA. His vision, entrepreneurship, and steadfast commitment to our values have shaped every stage of our journey and continue to shape how Ted and I lead Netflix today.”
— Greg Peters, Q1 2026 Earnings Press Release
NFLX Earnings Trends
NFLX vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NFLX EPS Trend
Earnings per share: estimate vs actual
NFLX Revenue Trend
Quarterly revenue: estimate vs actual
NFLX Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $1.23 | — | $12.25B | +0.63% |
| Q4 25 BEAT FY | $0.55 | $0.56 | +1.82% | $12.05B | +0.70% |
| FY Full Year | $2.55 | $2.53 | -0.91% | $45.18B | +0.19% |
| Q3 25 MISS | $6.97 | $5.87 | -15.79% | $11.51B | -0.01% |
| Q2 25 BEAT | $7.06 | $7.19 | +1.89% | $11.08B | +0.40% |
| Q1 25 BEAT | $5.66 | $6.61 | +16.83% | $10.54B | +0.35% |