Netflix (NFLX) investor relations material

Executive summary

• Maintained strong momentum from 2025, with Q1 2026 results supporting continued organic growth and robust outlook for the year.

• Revenue for Q1 2026 rose 16% year-over-year to $12.25 billion, driven by membership growth, price increases, and higher advertising revenue.

• Paid membership exceeded 325 million, with significant room for further penetration in the addressable market.

• Net income surged 83% to $5.28 billion, primarily due to a $2.8 billion termination fee from the canceled Warner Bros. Discovery (WBD) merger.

• Focused on enhancing entertainment value, expanding into podcasts, live sports, and gaming, and leveraging technology for improved service and monetization.

Financial highlights

• Revenue growth guidance for 2026 is 12%-14%, with operating margin targeted at 31.5%.

• Operating income increased 18% to $3.96 billion, with operating margin up to 32.3% from 31.7% a year ago.

• Advertising business expected to double to $3 billion in 2026.

• APAC was the strongest FX-neutral revenue growth market in Q1, with notable performance in Japan, India, Korea, and Southeast Asia.

• Net cash from operating activities was $5.29 billion, up 90% year-over-year.

Outlook and guidance

• Full-year margin guidance remains unchanged despite Warner Brothers deal costs; no material impact on operating margin outlook.

• Management expects continued investment in global and original content, with sufficient liquidity for the next twelve months and beyond.

• Continued disciplined approach to M&A, with organic growth as the primary focus.

• Expect to deliver multi-year growth beyond the 12%-14% revenue target for 2026.

• No material changes to risk factors or forward-looking statements from the prior annual report.