Netflix Reports Q4 2025 Earnings of $12 Billion Amid Acquisition Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 50m ago
0mins
Source: Fool
- Earnings Beat: Netflix's Q4 2025 revenue reached $12 billion, an 18% year-over-year increase, with net income up 29%, showcasing strong performance on its 325 million global subscribers, yet shares fell 10%, indicating market concerns over the Warner Bros. acquisition.
- Acquisition Risks: Netflix announced its intention to acquire Warner Bros. for $82.7 billion on December 5, 2025, which could enhance its content library but has investors worried about the complexities and financial strain of the deal, leading to stock price pressure.
- Ad Revenue Surge: In 2025, Netflix's ad revenue doubled to $1.5 billion, with expectations to double again in 2026, marking it as a significant growth engine for the company, despite overall stock price being affected by acquisition risks.
- Market Saturation and Expansion: While the U.S. market nears saturation, Netflix has opportunities for international expansion; however, investor concerns regarding the execution risks of the Warner Bros. deal and potential antitrust scrutiny may impact its future growth potential.
Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 83.540
Low
92.00
Averages
129.47
High
152.50
Current: 83.540
Low
92.00
Averages
129.47
High
152.50
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
