Netflix Revenues Up 16 Percent to $12.3 Billion

Netflix reported that it earned a net income of $5.3 billion on revenues of $12.3 billion in the quarter ending March 31, 2026. Those figures represent growth of x percent and 16.2 percent, respectively, year-over-year (YOY). But they fell short of analyst expectations, triggering a 9 percent decline in the company’s stock price.

“Revenue in the first quarter grew 16 percent year over year, driven primarily by membership growth, higher pricing, and increased ad revenue,” Netflix explained in a letter to shareholders. “Revenue was slightly above our forecast due to higher than forecasted membership growth and favorable [currency exchange rate] movements net of hedging.”

Netflix had to pay a $2.8 billion termination fee tied to its failed bid to acquire Warner Bros. during the quarter, and it recognized this cost in “interest and other income.” Despite losing out on Warner Bros., Netflix declined to adjust its revenue projects for the rest of 2026. But its estimate for the current quarter is lower than expected.

The company also revealed that co-founder and chairman of the board Reed Hastings would retire from Netflix when his term expires in June after 29 years with the company.

“Netflix changed my life in so many ways, and my all‑time favorite memory was January 2016, when we enabled nearly the entire planet to enjoy our service,” Mr. Hastings said. “My real contribution at Netflix wasn’t a single decision; it was a focus on member joy, building a culture that others could inherit and improve, and building a company that could be both beloved by members and wildly successful for generations to come. A special thanks to Greg and Ted, whose commitment to Netflix’s greatness is so strong that I can now focus on new things.”

Looking ahead, Netflix says it plans to release a new mobile experience soon that will feature a vertical video discovery feed. It also plans to continue leveraging AI to improve its recommendations for customers, and it will continue expanding into related verticals like podcasts and games.

“The entertainment industry remains extraordinarily vibrant and intensely competitive,” Netflix noted. “Today, our competitive set includes Alphabet, Amazon, Apple, Comcast, Disney, local media companies around the world, Meta, Roblox, and TikTok, to name a few.”