Netflix beats revenue estimates as subscriber count climbs 325 million

Netflix exceeded Wall Street’s revenue estimates for its holiday quarter, as it crossed 325 million subscribers, the company said on Tuesday.

Revenue came in at $12.1 billion for October through December—topping forecasts of $11.97 billion for the quarter, according to analysts surveyed by LSEG.

Nielsen reported that Netflix’s monthly viewership rose 10% in December, thanks largely to the final season of hit sci-fi series “Stranger Things,” which generated 15 billion viewing minutes. Netflix also streamed two National Football League games on Christmas Day and released a third film in the “Knives Out” murder mystery series.

Investors remain focused on Netflix’s $82.7 billion pursuit of Warner Bros Discovery’s studio and other entertainment assets, as it seeks to fend off a hostile bid from Paramount Skydance.

Netflix amended its merger agreement to an all-cash offer for the film and television studios, its extensive content library, and major entertainment franchises, including “Game of Thrones,” “Harry Potter,” and DC Comics’ superheroes like Batman and Superman.

“Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty,” Netflix Co-CEO Ted Sarandos said in a statement accompanying Tuesday’s amended bid.

In its note to investors, Netflix said the Warner Bros acquisition will provide it with an even broader and higher-quality selection of movies and shows for its subscribers, while it will be able to offer more personalized, flexible subscription offers with the addition of HBO Max.

The company said it obtained commitments for a $59 billion bridge loan on December 4 to support the Warner acquisition. On Monday, it increased the bridge loan commitment by $8.2 billion to support its all-cash $27.75 per share offer.

In financial results, Netflix reported adjusted per-share earnings of 56 cents for the fourth quarter ended in December, slightly above estimates of 55 cents per share.

Netflix forecasts continued growth in 2026, with revenue of $50.7 billion to $51.7 billion. Ad revenue is expected to roughly double, Netflix said.

—Dawn Chmielewski and Lisa Richwine, Reuters

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