Netflix announced on Tuesday that its global paid subscriber base has reached 325 million, a key milestone since the last reported figure a year ago.
For the quarter ending 31 December, the company posted earnings of 56 cents per share, edging past the expected 55 cents. Revenue totalled $12.05 billion, topping forecasts of $11.97 billion, with net profits rising to $2.42 billion from $1.87 billion the previous year.
Turnover grew 18 per cent year-on-year, boosted by subscriber gains, price hikes and advertising revenue. The ad-supported tier, launched in late 2022, delivered over $1.5 billion in 2025—more than 2.5 times the 2024 amount. Netflix anticipates 2026 revenue between $50.7 billion and $51.7 billion, including “a projected rough doubling of ad revenue in 2026.”
“We’re focused on improving the core business, you know, and we do that by increasing the variety and quality of our series and films,” said co-CEO Ted Sarandos during the earnings call, noting intense industry rivalry.
Shares dropped over 4 per cent after hours, as results trailed ambitious internal targets described by co-CEO Greg Peters as “long-term aspirations.” “Having said that, those goals were based on organic process,” Peters added.
The update coincides with Netflix’s $72 billion all-cash bid for Warner Bros. Discovery’s HBO Max and film studio, revised on Tuesday at $27.75 per WBD share. The deal, which pauses share buybacks, aims to “allow us to accelerate our business strategy” and “offer more personalised and flexible subscription options.”
Despite market surprise and rival bids from Paramount Skydance, Sarandos affirmed progress. “We’re working really hard to close the acquisition of Warner Bros. Studios and HBO, which we see as a strategic accelerant,” he said, confident of approval “because this deal is pro-consumer, pro-innovation, pro-worker.”
“We’re going to need those teams, these folks that have extensive experience and expertise. We want them to stay on and run those businesses,” Sarandos added.