Netflix Q1 2026 Earnings: Revenue And Earnings Beat Expectations But Shares Still Plunge

Netflix topped Wall Street expectations for earnings and revenue in the first quarter, but the streaming giant’s shares still took a dive in after-hours trading Thursday.

Revenue rose 16% from the year-ago period to hit $12.25 billion, while diluted earnings per share came in at $1.23, nearly double a year ago.

Wall Street analysts’ consensus expectations were for earnings of 76 cents a share and total revenue of $12.18 billion.

Despite the beat, Netflix shares – which have risen 15% in 2026 to date – fell 9% in after-hours trading.

The company recently phased in another round of price increases, though the move took place at the end of March, so it had little impact on the quarterly results. Typically, price increases prompt some cancellations, but the longer-term financial benefits are worth it, especially if some of those who canceled can be wooed back with compelling programming.

Operating margin came in at a bit more than 32% in the quarter and is expected to stay at that level for the full year. The company said in a shareholder letter than it did not adjust its full-year guidance.

Subscription numbers, which used to send shares roaring higher each quarter (except during an infamous slump in 2022), are no longer regularly disclosed by Netflix. The company did say when reporting fourth quarter earnings in January that it ended 2025 with more than 325 million global subscribers.

The quarterly filing was Netflix’s first since it bowed out of a deal to acquire Warner Bros. Discovery’s studios-and-streaming unit. Paramount now has a pending deal to buy all of WBD for a staggering $111 billion, including debt.

Netflix’s report kicked off the latest round of corporate earnings in the media and tech sector. Comcast is due to report its first-quarter results on April 24, with Disney and Paramount following in early May.