Netflix posts strong Q1 earnings on subscriber growth and pricing, but Q2 outlook weighs on shares

Sat, 18 Apr 2026 12:36:00 +0200

Netflix reported first‑quarter 2026 results that significantly exceeded analyst expectations, showcasing the resilience of its subscription‑based streaming business. The company recorded earnings per share of 1.23 dollars, well above the consensus estimate of 0.79 dollars, and revenue of 12.25 billion dollars, an increase of 16.2% year over year and ahead of the 12.18 billion dollar forecast. Management attributed this growth to membership gains, higher subscription prices, and a meaningful rise in advertising revenue, which is on track to reach about 3 billion dollars in 2026, double the prior year. Despite the strong Q1 performance, Netflix’s second‑quarter outlook proved a disappointment to investors, as the company guided Q2 EPS and revenue below Wall Street estimates, prompting a roughly 10% drop in its share price after the release. The streaming giant also confirmed that co‑founder and Chairman Reed Hastings will step down from the board after his current term ends, shifting foc