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StocksMediumUpdated×9•Originally published 16 April 2026•Updated 18 April 2026•

1 min read

Netflix Q1 Revenue Beats Expectations at $12.25 Billion Driven by Subscriber Growth

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Key Facts

1Wall Street consensus estimates Netflix revenue at $12.17 billion for Q1, representing a 15.4% year-over-year increase.

about 2 months ago

Version History

Version 9about 2 months ago

What changed: Added specific EPS figure ($1.23) and incorporated critical analyst sentiment from Citi indicating that the 'double beat' failed to satisfy core investor expectations.

Version 8about 2 months ago

What changed: Updated the story to include Visible Alpha consensus estimates, Zacks 'strong buy' rating, and new analyst price targets.

Version 7about 2 months ago

What changed: Updated the story to quantify the stock drop (9%), identify Reed Hastings as the departing chairman, detail the $3B ad-revenue target, and clarify the $2.8B one-time gain impact on financial metrics.

Version 6about 2 months ago

What changed: The report was updated to include specific LSEG consensus data for pre-earnings expectations, providing a direct comparison for the revenue and EPS beats.

Version 5about 2 months ago

What changed: Added year-over-year growth percentages for revenue and EPS, and specified the timing of the share price decline as after-hours trading.

Version 4about 2 months ago

What changed: Updated the report to include the significant EPS beat and noted the share price decline driven by weak forward guidance and the co-founder's exit.

Version 3about 2 months ago

What changed: Updated the story to reflect actual Q1 financial results which exceeded expectations, moving beyond the initial pre-earnings forecasts.

Version 2about 2 months ago

What changed: Updated the story to include Citigroup's downgrade, KeyBanc's increased price target, higher volatility expectations from options traders, and clarification on the Warner Bros. deal withdrawal.

Version 1about 2 months ago

What changed: Updated the story to include Netflix's decision to withdraw from the Warner Bros acquisition and its strategic shift toward price hikes and advertising expansion.

Netflix (NFLX) reported strong Q1 results with revenue of $12.25 billion and earnings per share (EPS) of $1.23, yet shares tumbled 9% in after-hours trading. Despite the 'double beat' on top and bottom lines, Citi senior analyst Jason Bazinet stated that the results failed to meet any of the three key investor expectations. This decline followed soft forward guidance and the departure of co-founder Reed Hastings, contrasting with analysts raising the average price target to $121.67. The company remains focused on a 31.5% operating margin and doubling ad revenue by 2026, with ad-supported plans currently accounting for over 60% of new signups. Investors are now weighing these advertising gains and leadership transitions against the critical sentiment from major institutional analysts.