Sopa Photos | Lightrocket | Getty Photos
Netflix will report its fourth-quarter earnings after the bell on Tuesday, with questions surrounding its pending acquisition of Warner Bros. Discovery’s property prime of thoughts for buyers.
In recent times Netflix’s quarterly stories have been largely regular — with the exception of a miss on earnings estimates final quarter, associated to a singular one-time cost. Netflix stopped reporting subscriber numbers in early 2025 — when it mentioned it had greater than 300 million world subscribers — and has as a substitute targeted on its technique shift towards rising its advertising-supported enterprise.
For a number of quarters, Wall Road has been significantly targeted on that ad-supported enterprise, any results of current worth will increase on the subscriber base, and Netflix’s content material pipeline.
This is how the corporate is anticipated to carry out for in its fourth quarter in keeping with analysts polled by LSEG:
- Earnings per share: 55 cents, in keeping with LSEG
- Income: $11.97 billion, in keeping with LSEG
This quarter’s financials, nevertheless, are more likely to be overshadowed by Netflix’s announcement in December that it had agreed to amass Warner Bros. Discovery’s streaming and movie studio property for $27.75 per WBD share, or an fairness worth of $72 billion.
The proposed acquisition got here as a shock to the market because the streaming large has lengthy stayed away from trade consolidation and mega offers.
“This autumn was a giant flex for Netflix, marked by bolder swings to drive progress past its core,” mentioned Mike Proulx, vp and analysis director at Forrester. “That is notable for an organization that touts itself as extra builders than consumers. But Netflix’s This autumn actions say in any other case.”
For the reason that announcement, Netflix’s inventory has fallen in response. Since October, when Netflix was first rumored to have an interest within the property, the corporate’s inventory dropped practically 30%.
And the potential acquisition has not been with out its bumps. Quickly after asserting the take care of Netflix, Paramount Skydance launched a hostile effort to purchase all of WBD.
As Paramount’s stress to amass WBD has ramped up, Netflix this week amended its provide to be all-cash. In the meantime, there’s additionally been questions about whether or not Netflix’s acquisition of WBD would obtain needed regulatory approval.
“2026 can be a defining yr for Netflix. If the Warner Bros. deal really occurs, it can reposition a newly beefed‑up Netflix, not simply throughout the streaming market, however throughout the leisure trade at massive. However that battle is barely the start. Anticipate heaps extra drama because the bidding warfare performs out this yr,” Proulx mentioned.
This story is creating. Please examine again for updates.
