Overview
- Netflix shares fell about 8% to 9% in after-hours trading Thursday after the company guided to 78 cents in operating profit per share versus the 84-cent analyst view.
- First-quarter revenue reached about $12.25 billion and net income $5.28 billion, lifted by a $2.8 billion termination fee tied to the failed Warner Bros. deal.
- Co-founder Reed Hastings will leave the board in June after 29 years at the company as he shifts his focus to philanthropy.
- Management outlined growth bets in advertising, live programming and AI tools, projecting about $3 billion in ad sales for 2026 and citing the recent purchase of Ben Affleck’s InterPositive.
- Netflix abandoned its pursuit of Warner Bros. Discovery after a higher Paramount bid, giving up access to major franchises and reinforcing a plan to extend its own hits and formats.