Overview
- Netflix officially abandoned its pursuit of Warner Bros. Discovery’s studio assets, a transaction previously reported at about $82.7 billion.
- The stock rose roughly 14% following the late‑February decision, as investors welcomed the move.
- Management restarted share repurchases, supported by $9.5 billion in free cash flow generated in 2025.
- Guidance points to about $51.2 billion in 2026 revenue, with advertising expected to reach $3 billion next year.
- Operating margin reached 29.5% in 2025, and Netflix’s U.S. TV viewing share increased to 8.8% by January 2026 while YouTube maintained a larger share.