Netflix increases profits, revenues and subscribers as it strengthens deal for Warner

Netflix ended the fourth quarter with revenues and profit up and above analysts' expectations. Revenues rose 18% to $12.05 billion and profit increased 29% to $2.42 billion.

The streaming king also reported that total subscribers exceeded 325 million. And in the previous hours it had reinforced its deal to acquire Warner Bros. movie studios and streaming assets. Discovery, with an all-cash offer of 72 billion plus debt instead of cash and stock.

In the after-market, despite the robust results, the stock dropped almost 5%, with investors seemingly unnerved by a slightly disappointing outlook on the first quarter of 2026 and the prospects of its acquisition of Warner, challenged by a hostile bid from Paramount of 77.9 billion plus debt for the entire Wb Discovery group.

In its letter to investors, the company led by co-CEOs Ted Sarandos and Greg Peters defended the acquisition of Warner by stating that 'the businesses are complementary and together will provide greater opportunities for creators and the entire entertainment industry'. Netflix also stopped share buybacks to preserve resources for the deal, which was approved by the boards of both companies.

Netflix in the last quarter was able to leverage the popularity of shows such as the final season of Stranger Things. With subscribers, advertising revenue was also on the rise. For the whole of 2025, it reported revenues of 45.18 billion and profits of 10.98 billion.