Netflix Surpasses Q1 Earnings Forecast, Yet Shares Decline
Netflix reported first-quarter results that beat analysts’ expectations. Revenue rose to $12.25 billion, a 16% increase from a year earlier. Diluted earnings per share came in at $1.23, well above the 76 cents Wall Street forecast.
Financial snapshot
The company recorded stronger-than-expected top and bottom lines. Analysts had forecast $12.18 billion in revenue.
| Metric | Q1 Result | Wall Street Estimate |
|---|---|---|
| Revenue | $12.25 billion | $12.18 billion |
| Diluted EPS | $1.23 | $0.76 |
| Operating margin | Just over 32% | — |
| Global subscribers (end 2025) | More than 325 million | — |
Market reaction and share movement
Shares fell about 9% in after-hours trading. The decline followed the earnings release despite the solid numbers.
Shares had climbed roughly 15% in 2026 before the drop. This disconnect between results and stock movement has happened in prior quarters.
Why the stock fell
Investors may have reacted to other news in the shareholder letter. The company said co-founder Reed Hastings will leave the board later this year.
Hastings stepped down as CEO in 2023. He has pursued philanthropy, real estate development in ski country, and a board role at Anthropic.
Subscribers, pricing and profit margins
The shareholder letter credited “slightly higher-than-planned subscription revenue” for the gains. Netflix did not disclose quarterly subscriber additions.
The company ended 2025 with over 325 million global accounts, as noted in January. A price increase was phased in at the end of March and had little effect on the quarter.
Operating margin exceeded 32% for the quarter. Management expects margins to remain near that level for the full year.
Netflix left its full-year guidance unchanged. The business expects to stay on the existing trajectory.
M&A backdrop and industry calendar
This report was Netflix’s first filing after exiting talks to buy Warner Bros. Discovery’s studios-and-streaming unit. Paramount now has a pending offer to acquire WBD for about $111 billion, including debt.
The earnings release kicked off the media and tech reporting season. Comcast is due to report on April 24. Disney and Paramount will report results in early May.
Filmogaz.com will continue tracking developments as companies report and markets react. The quarter shows that Netflix surpasses Q1 earnings forecast, even as shares decline in volatile trading.
