Netflix reported its fourth quarter 2025 financials on [insert date], revealing revenues of $12.05 billion, an 18% increase year-over-year, and an operating income of $2.96 billion, up 30%. The streaming giant ended the year with 325 million paid subscribers and generated $9.5 billion in free cash flow, exceeding its guidance of $9 billion. For full-year 2025, revenues totaled $45 billion, with an operating margin of 29.5%, up from 26.7% in 2024.
Looking ahead to 2026, Netflix projects revenues between $50.7 billion and $51.7 billion, indicating a growth of 12% to 14%, with an operational margin target of 31.5%. Notable expenses will include approximately $275 million related to the acquisition of Warner Bros. Studios and increased content spending, which is planned to be front-loaded in early 2026. Free cash flow is expected to decline to $6 billion due to these elevated investments.
In comparison, Netflix’s advertising revenue is on the rise, projected to double to about $3 billion in 2026, despite remaining a modest part of overall income. Shares of Netflix have decreased 32.4% in the past six months, while the Zacks consensus estimate for 2026 revenues is $51.91 billion, reflecting a 13.3% year-over-year growth.
