Key Points
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Netflix reported surpassing Wall Street and management estimates in the fourth quarter.
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The company’s revenue grew 17.6% year-over-year to $12.05 billion, and diluted earnings per share (EPS) rose 30% to $0.56.
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Paid subscribers topped 325 million, up from 302 million in 2024, while ad revenue surged 250% to over $1.5 billion.
Netflix (NASDAQ: NFLX) reported its financial results after market close on Tuesday, exceeding analyst expectations with a revenue of $12.05 billion against an anticipated $11.97 billion, and an EPS of $0.56 compared to the expected $0.55. The growth is partly attributed to a strong performance in its “basic with ads” tier.
Despite this positive performance, concerns loom over Netflix’s ongoing plans to acquire Warner Bros. Discovery assets for $72 billion, fueled by a counteroffer from Paramount Skydance. The market has reacted negatively, causing Netflix’s stock to decline nearly 38% from its peak, as investors fear a prolonged bidding war could drive up costs. However, Netflix anticipates continued growth, forecasting revenue around $51.2 billion for the full year and a doubling of ad revenue.
