Overview
- Netflix reported Q1 2026 revenue of $12.25 billion and EPS that beat estimates, and the company raised full-year free cash flow guidance to about $12.5 billion.
- The ad-supported tier is scaling rapidly with management expecting advertising revenue to roughly double to about $3 billion in 2026 and with a majority of ad-tier sign-ups being net-new users.
- The board approved a new $25 billion share repurchase in April 2026, a program that exceeds Netflix’s annual content budget and follows the company walking away from a large Warner Bros. deal.
- Shares have fallen roughly a third from last year’s peak and now trade around $81–$82, leaving the stock below key moving averages while Wall Street consensus still implies roughly 40% upside.
- Netflix now leans on product and content diversification—gaming, live events and generative-AI features—while serving 325 million-plus paid subscribers and holding only a single-digit share of global TV viewing, which leaves substantial growth runway.