Netflix reported strong Q1 2026 results with revenue and operating income exceeding guidance, driven by higher-than-planned subscription and ad revenue. The company reiterated its full-year 2026 guidance and highlighted a clear strategy focused on delivering entertainment value, leveraging technology, and improving monetization, while acknowledging the dynamic and competitive industry landscape.
Q1 revenue grew 16% year over year (+14% on a FX-neutral basis) and operating income grew 18%, both ahead of guidance.
positiveDiluted EPS for the quarter was $1.23, up 86% year over year from $0.66 in Q1'25, exceeding forecast.
positiveFull year 2026 revenue guidance remains $50.7B-$51.7B (12%-14% growth), and operating margin target of 31.5%.
positiveFree cash flow (FCF) rose to $5.1B in Q1'26, up from $2.7B in Q1'25, with full-year FCF now projected at $12.5B.
positiveAcquisition of InterPositive to provide creators with broader GenAI tools.
positiveQ2 operating margin is forecast at 32.6% compared to 34.1% in the year-ago quarter, due to content amortization timing.
attentionThe company's competitive set includes Alphabet, Amazon, Apple, Comcast, Disney, Meta, Roblox, and TikTok, indicating an intensely competitive industry.
attentionReed Hastings will not stand for re-election to the Board, stepping down from his Chairman role.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
UCAN | N/A | — | — | — | +13.6% |
EMEA | N/A | — | — | — | +12.0% |
LATAM | N/A | — | — | — | +17.7% |
APAC | N/A | — | — | — | +19.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| revenue_growth | 12% to 14% | FY2026 | wide_range | New |
| operating_margin | 31.5% | FY2026 | point | Maintained |
| advertising_business_revenue | approximately USD 3 billion | FY2026 | point | New |
| advertising_revenue | $3 billion | FY2026 | point | Maintained |
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We have a clear strategy and strong conviction in our long runway of growth, with three areas of focus to achieve our goals: Delivering more entertainment value to members, Leveraging technology to improve our service, and Improving monetization.
Our primary internal quality engagement metric hit an all time high in Q1 and we continue to expand our offering with video podcasts, our first regional live event — the World Baseball Classic, which broke viewing records in Japan, and, in early April, a new standalone gaming app for kids.
We are continually expanding how we can leverage AI to improve the member experience, and in Q1 we acquired InterPositive to provide our creators with a broader set of GenAI tools.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.