Netflix enters Q1 with a clearer narrative after shelving the Warner Bros. Discovery acquisition, shifting investor attention toward fundamentals and growth drivers. The company reiterates a Q1 revenue target of $12.16 billion, about 15% higher than a year earlier, and an EPS of $0.76, while guiding full-year revenue of $50.7โ$51.7 billion and a 31.5% operating margin (up from 29.5% in 2025). The message also notes the resumption of its buyback program, US price increases, and a rapidly expanding advertising business that could diversify revenue beyond subscriptions. With $20 billion planned for content this year, the question is whether growth remains profitable.
Key points
- Q1 revenue guidance of $12.16B with about 15% YoY growth and EPS of $0.76.
- Full-year revenue guidance of $50.7โ$51.7B and an operating margin of 31.5% (vs 29.5% in 2025).
- Warner Bros. Discovery deal abandoned; buyback program resumed; US price increases implemented.
- Advertising revenue rose sharply in 2025 (to about $1.5B) and is expected to reach roughly $3B in 2026.
Why it matters
The preview signals Netflix is balancing strong content investment with profitability, as investors assess whether growth can continue alongside margin expansion. The removal of the Warner deal overhang, renewed buybacks, and a rising ad-supported tier give a more complete picture of Netflixโs revenue mix and potential for higher-margin growth beyond subscriptions.
What to watch
- Q1 actual results: revenue, EPS, and how they compare to guidance.
- Performance of the ad-supported tier and total ad revenue progression toward $3B in 2026.
- Impact of US price increases and content spending on margins and subscriber dynamics.
Disclosure: The content below is a press release provided by the company or its PR representative. It is published for informational purposes.
Netflix Q1 Preview: $12.16B Revenue, 15% Growth
Abu Dhabi, UAE -13 April 2026: Netflix enters its first-quarter earnings in a notably different position compared to three months ago, with renewed investor focus on fundamentals following key strategic shifts, according to the latest market commentary from eToro.
Josh Gilbert, Market Analyst at eToro, highlighted that Netflixโs decision to walk away from the Warner Bros. Discovery acquisition in March has removed a major overhang for investors, while the resumption of its share buyback programme and recent US price increases have further reshaped sentiment around the stock.
โNetflix is heading into this earnings season with a cleaner narrative,โ said Gilbert. โWith the Warner deal off the table, investor attention can now return squarely to fundamentals and growth drivers.โ
Netflix has guided for Q1 revenue of $12.16 billion, representing approximately 15% year-on-year growth, alongside earnings per share of $0.76. For the full year, the company expects revenue between $50.7 billion and $51.7 billion, with an operating margin of 31.5%, up from 29.5% in 2025.
Gilbert noted that the companyโs previous earnings fell short of analyst expectations, particularly around forward guidance, placing added pressure on this quarterโs results.
โWith $20 billion earmarked for content spend this year, the market will be looking closely at whether Netflix can sustain growth without eroding profitability,โ he added.
A key area of focus for investors this quarter will be Netflixโs advertising business. Following a milestone of more than 325 million subscribers last quarter, the companyโs advertising revenue more than doubled in 2025 to approximately $1.5 billion and is expected to double again to $3 billion this year.
โAdvertising is quickly becoming a critical second revenue engine for Netflix,โ Gilbert explained. โIf Q1 results show the ad-supported tier remains on track, it strengthens the case that Netflix can drive higher-margin growth beyond subscriptions.โ
With the Warner deal no longer a factor, the buyback programme back in motion, and its advertising business scaling rapidly, Gilbert believes Netflix has an opportunity to reinforce its leadership position in the streaming sector.
โThis is a pivotal quarter for Netflix to remind the market why it continues to lead the streaming space,โ he concluded.
About eToro
eToro is the trading and investing platform that empowers you to invest, share and learn. Founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way, today eToro has 40 million registered users from 75 countries.
eToro believes in the power of shared knowledge and that investors can become more successful by investing together. The platform has built a collaborative investment community designed to provide users with the tools they need to grow their knowledge and wealth. On eToro, users can hold a range of traditional and innovative assets and choose how they invest: trade directly, invest in a portfolio, or copy other investors.
Visit eToroโs media centre for the latest news.
