Netflix delivered a Q1-2026 EPS and revenue beat, but shares fell 9% on soft guidance and Reed Hastings stepping down as chairman. Despite a one-time $2.8B gain inflating EPS and FCF, NFLX projects a 31.5% operating margin and double-digit operating income growth for 2026. Ad-supported plans are driving higher-margin revenue, with ad revenue expected to double to $3B in 2026 and over 60% of new Q1 signups in supported regions.
Netflix, Inc. (NFLX) Q1 2026 Earnings Call Transcript
Netflix may have lost out in an expensive months-long fight to buy Warner Bros. Discovery, but there were some upsides for the streaming giant, its executives said in today's first quarter earnings call.
The Dow is up +6% off late-March lows, while the other indexes are +10% or higher.
While the top- and bottom-line numbers for Netflix (NFLX) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Netflix (NFLX) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.66 per share a year ago.
Investors aren't cheering Netflix's latest showing.
Netflix says the total compensation for Co-CEOs Ted Sarandos and Greg Peters dropped in 2025, but it remained at a robust level of more than $53 million apiece. Sarandos saw his total compensation come in at $53.9 million, down from $61.9 million in 2024. Peters collected $53.2 million, down from $60.3 million.
Reed Hastings, the co-founder and chairman Netflix, is leaving the company's board when his term expires this summer. Hastings is stepping aside to focus on “philanthropy and other pursuits,” the company said in a letter to shareholders.
Netflix “built our M&A muscle” during its ill-fated quest to acquire Warner Bros, Co-CEO Ted Sarandos told Wall Street analysts Thursday. “We've learned so much about deal execution, about early integration,” Sarandos said. “We're really proud of the teams that did all that work. We were proud to win the bid.
Reed Hastings, who helped start Netflix in the late 1990s, is leaving the company's board. Hastings, who was CEO until 2023, will focus on "philanthropy and other pursuits," Netflix said.
Hastings is credited with helping to revolutionize how movies and television shows are delivered in homes, upending Hollywood's business model.