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Netflix beats Q1 earnings and revenue estimates but shares drop 9% after hours

Company Fundamentals
16 Apr 2026
Deadline
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Bearish
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Netflix reported first-quarter revenue of $12.25 billion, up 16% year-over-year, and earnings per share of $1.23, nearly double analyst expectations. Despite beating Wall Street forecasts, shares fell 9% in after-hours trading, possibly due to news that co-founder Reed Hastings will leave the board later this year. The company highlighted slightly higher subscription revenue and maintained its operating margin guidance at around 32% for the year. Netflix also recently raised prices, which may impact subscriber numbers but aims for long-term financial gains.

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