LOS GATOS, Calif.—Netflix generally exceeded Wall Street’s expectations and its own forecasts in Q4 2025 as the streamer passed the 325 million subscriber milestone during the quarter and posted $12.05 billion in revenue and $2.42 billion in net income.
For the full year, Netflix reported $45.18 billion in revenue, $10.98 billion in net income and $2.58 earnings per share, up from $2.03 last year.
“With our strong Q4 results, we met or exceeded all of our full year 2025 financial objectives,” management noted in a letter to shareholders. “We grew revenue 16% to $45B (+17% on a F/X neutral basis) and we increased our operating margin to 29.5% for the year, up from 26.7% in 2024. We also made great progress growing advertising revenue. In 2025, which was only our third year selling advertising, ad revenue grew by more than 2.5x vs. 2024 to over $1.5 billion.”
It also reported ongoing increases in viewing. “In the second half of 2025, our members watched 96 billion hours on Netflix, up 2% (+1.5 billion hours) year over year vs. a 1% increase in the first half of the year. This growth was driven by viewing of our originals, which was up 9% year over year in the second half of 2025 due, in part, to our strong Q4 branded slate.”
Earlier in the day, Nielsen released data showing that Netflix helped streaming set several records in December of 2025. Overall, Netflix had about 9.0% of TV viewing in December. Netflix viewership was up 10% month-over-month, with increases largely driven by "Stranger Things", which generated over 15 billion viewing minutes and was December’s most-watched streaming title, according to Nielsen.
Netflix stock, however, fell by 4.5% by 6 p.m. ET in afterhours trading.
In terms of 2026, the company said that based on F/X rates as of 1/1/2026, we forecast revenue of $50.7B-$51.7B. This represents 12%-14% year over year growth (or 11%-13% F/X neutral growth), driven by increases in membership and pricing plus a projected rough doubling of ad revenue in 2026 vs. 2025. We’re targeting a 2026 operating margin of 31.5% (based on 1/1/26 F/X rates), up from 29.5% in 2025, which includes approximately $275M of acquisition-related expenses. Our margin forecast also reflects content amortization growth of ~10% in 2026, with higher growth in the first half than the second half due to the timing of title launches. As a result, we expect higher operating income growth in the second half of 2026 than in the first half.”
The earnings were released on the same day that Netflix and WBD announced a revision to Netflix’s offer for some of WBD’s assets to make it an all cash offer.
“We believe our proposed purchase of Warner Bros. will allow us to accelerate our business strategy. Together, we see two main areas of opportunity,” the company said in a letter to shareholders. “First, Warner Bros.’ library, development and IP will allow us to provide an even broader and higher-quality selection of content for members; and, second, the addition of HBO Max will allow us to offer more personalized and flexible subscription options, better meeting the diverse preferences of our global audience. Netflix and Warner Bros. are highly complementary businesses and together we’ll be able to offer more opportunities to creators and strengthen the entire entertainment industry. This will allow us to offer more choice and greater value to consumers. Additionally, we’ll expand production capacity in the US and abroad and grow investment in original content over the long-term, which will create jobs and help sustain a healthy entertainment industry.”
