dailyloe.com – Netflix is set to report its first quarter 2026 earnings after the market closes on Thursday, April 16. This follows a period where the company raised subscription prices and lost a major acquisition bid. The streaming giant is expected to post revenue of $12.17 billion for the quarter. This compares to revenue of $10.54 billion in the first quarter of the previous year.
Adjusted earnings per share are anticipated to be $0.76. This is up from $0.66 per share reported in the same quarter a year ago. The company executed a 10-for-1 stock split in mid-November. This is the first earnings report since Netflix left negotiations for Warner Bros. Discovery.
Paramount Skydance won the contentious bidding contest to acquire Warner Bros. Discovery. Paramount Skydance agreed to pay a breakup fee. Wedbush analyst Alicia Reese commented on the situation in a client note. Reese wrote that Netflix has an incremental $2.8 billion to spend from the deal break-up fee.
Reese stated the funds are for content and ad stack improvements this year. She expects this spending to extend Netflix’s competitive lead. Warner Bros. shareholders will vote next week on the $110 billion offer from Paramount Skydance. Investor wariness over the potential merger’s debt provided relief when it fell through.
This relief sent Netflix shares higher. BMO Research analyst Brian J. Pitz wrote about a cleaner story post-merger break. Pitz said investors are refocusing on core and near-term fundamentals. He noted investors seek evidence Netflix can scale a massive advertising business.
The advertising business is valued at over $10 billion long-term. This report also follows Netflix’s second subscription price increase in just over a year. Brian J. Pitz believes the price hikes will contribute roughly $1.5 billion in incremental revenue in 2026. He estimates this provides 3.3% growth from pricing alone.
Netflix increased its ad-supported Standard plan by $1 to $8.99 monthly. The Standard ad-free tier rose by $2 to $19.99 per month. The Premium plan also increased by $2 to $26.99 monthly. Bank of America analyst Jessica Reif Ehrlich wrote that the ability to raise prices is a sign of strength.[]
Source: Yahoo Finance
