Shares in Netflix slide despite bumper Q4 numbers
By Abigail Townsend
Date: Wednesday 21 Jan 2026
(Sharecast News) - Shares in US streaming giant Netflix came under pressure on Wednesday, despite fourth-quarter numbers beating expectations.
The media firm published results after the bell on Tuesday, shortly after it amended its $82.7bn offer for Warner Bros Discovery's studio and streaming businesses to an all-cash offer. Netflix is trying to fight off a rival hostile bid from Paramount Skydance.
The results showed fourth-quarter revenues grew by 17.6% to $12.05bn - better than the $11.97bn Wall Street had forecast -as paid subscribers hit 325m. Net income rose to $2.42bn from $1.87bn a year previously, while earnings per share of $0.56 cents, up from $0.43, narrowly beat forecasts for $0.55.
Netflix said engagement "remains healthy", adding: "The entertainment business remains vibrant and intensely competitive and we're optimistic about our future."
However, the stock came under pressure during pre-market trading, and by 0815 GMT had lost 5%.
Looking to the current quarter, Netflix expects revenue growth to slow compared to the fourth quarter's growth. It is forecasting revenues of $12.16bn, a 15.3% increase year-on-year. For the full year, it expects revenues to come in between $50.5bn and $51.7bn, a hike of between 12% and 14%.
In the year to 31 December 2025, revenues rose to $45.2bn from $39bn.
Netflix added that it was targeting a 2026 operating margin of 31.5%, up from 29.5%.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Revenues, margins and profits all beat expectations, but markets don't dwell on the rear-view mirror for long.
"The issue was guidance, and specifically margins, which are set to come under pressure in 2026 as costs ramp. Content spend is doing the damage, a timely reminder that even streaming's gold standard can't afford to take its foot off the creative gas."
Kathleen Brooks, research director at XTB, said: "Netflix's latest move for Warner Bros is a strategy for future revenue growth. After a period of slowing new users, this is a catalyst to bring people the streaming giant.
"However, this moves comes with uncertainty and markets do not like uncertainty, so Netflix is getting punished."
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