Key Points
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Netflix holds less than 10% viewing share in every market, offering significant growth potential.
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The company expects to increase revenue from $42.3 billion in 2022 to approximately $51 billion by 2026.
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Operating margin improved from 5.2% in 2018 to 29.5% in 2025, with further growth projected to 31.5% in 2026.
Netflix (NASDAQ: NFLX) has maintained a viewing share below 10% across all countries, indicating ample opportunity for subscriber growth. At the recent Morgan Stanley investor conference, CFO Spencer Neumann highlighted that despite having over 325 million paid members, most total TV viewing still occurs on other platforms.
The company experienced revenue growth from $7.6 billion in 2015 to $42.3 billion in 2022, with forecasts of double-digit growth through 2026. Netflix is also increasing its content budget to $20 billion, contributing to an improved operating margin projected to reach 31.5% in 2026.
As Netflix continues to expand its international reach, producing content in over 50 countries, significant member growth is anticipated, particularly in underpenetrated markets compared to the U.S.
