"Since then, the company closed a global licensing deal with Sony Pictures and announced a proposed $83 billion acquisition of Warner Bros. Discovery, shifting to an all-cash structure after rejecting a rival Paramount bid. Those moves signal Netflix's commitment to content depth and scale, but they also raise questions about capital allocation and integration risk. The market wants to see that subscriber momentum justifies these investments."
"What Matters This Quarter I'll be watching three things closely. What commentary will management provide on net additions? The password sharing crackdown delivered a surge in 2024, but that tailwind is fading. Management needs to prove the ad-supported tier and international expansion can drive sustainable growth. Second, operating margin trajectory matters more than the headline number. Netflix delivered a 28.2% operating margin in Q3."
Netflix reports Q4 2025 earnings after the bell with the stock down 6% over the past month and 30% from recent highs, creating lowered expectations. Last quarter's EPS missed consensus, with adjusted per-share EPS of $5.87 versus $6.96 after a 10-1 split, partly due to a one-time tax expense in Brazil. The company closed a global licensing deal with Sony and proposed an $83 billion all-cash acquisition of Warner Bros. Discovery after rejecting Paramount. Consensus expects 28% EPS growth and full-year EPS of $2.54. Key focuses include net additions, the fading password-sharing tailwind, ad-supported tier traction, international expansion, and operating margin trends (Q3 operating margin 28.2%).
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]