Netflix beats on earnings, but shares dip as the streamer's forecast for Q1 falls short of Wall Street expectations

Core Insights - Netflix reported record revenue of $12 billion and earnings per share of $0.56 for Q4 2025, slightly exceeding Wall Street estimates [1] - The company's first-quarter guidance of $0.76 per share fell short of analysts' expectations of $0.81 per share, leading to a decline in stock price [2] - Netflix's subscriber count increased to over 325 million, up from 300 million at the end of 2024, indicating growth in its user base [6] Financial Performance - Q4 2025 revenue was $12 billion, surpassing the expected figure of just under $12 billion [1] - Earnings per share for Q4 were reported at $0.56, slightly above the anticipated $0.55 [1] - First-quarter revenue projection is $12.15 billion with an operating margin of 32.1% [2] Market Position - Netflix's cancellation rate is the lowest among paid streaming services in the US, at less than 2% [7] - The company's viewership share on US TVs reached a record 9% in December, up from 8.3% in November, outperforming competitors like Disney [8] - Netflix is competing with YouTube for viewership time, with YouTube holding nearly 13% of the market [8] Strategic Moves - Netflix is pursuing the acquisition of Warner Bros. Discovery's studio and HBO assets, enhancing its content library with popular franchises like "Harry Potter" and "Game of Thrones" [10] - The company has made an all-cash bid to strengthen its position against rival suitor Paramount Skydance [6] - Netflix is diversifying its content offerings by adding video podcasts and investing in sports programming, including NFL games [9]