Netflix, Inc. (NFLX) reported strong earnings for the first quarter of 2026, with earnings per share at $1.23, an 86.4% increase from 66 cents a year ago, and exceeding the Zacks Consensus Estimate of 76 cents. Quarterly revenues increased by 16.2% year over year to $12.25 billion, modestly surpassing expectations.
Key drivers of this growth included significant membership gains and increased advertising revenues, with Netflix’s ad-supported tier accounting for over 60% of sign-ups in regions where it is available. The company’s operating income rose 18.2% to $4 billion, leading to a margin expansion to 32.3%. Free cash flow also saw a notable improvement, increasing to $5.1 billion from $2.7 billion in the prior year.
Netflix projects full-year 2026 revenues between $50.7 billion and $51.7 billion, maintaining an operating margin of 31.5%. The company forecasts second-quarter revenue to reach $12.57 billion with an operating margin of 32.6%. The success of recent content releases, including the fourth season of Bridgerton and BTS The Comeback Live, helped drive viewer engagement, which remains at an all-time high.
