Netflix has marked a new milestone in its long rise as the world’s most popular streaming service. The company reported that it surpassed 325 million paying subscribers at the end of its 2025 holiday quarter, helping it beat Wall Street’s revenue estimates and lift its full-year finances.
For the three months ending December 31, Netflix posted $12.05-12.1 billion in revenue, narrowly exceeding analysts’ forecasts of about $11.97 billion. Earnings per share were $0.56, slightly above expectations.
Executives credited several recent hits for driving strong viewership. The final season of “Stranger Things” drew a massive audience, Nielsen data showed, with viewers logging billions of minutes of content. Netflix also streamed two NFL games on Christmas Day, further boosting engagement.
Despite beating revenue forecasts, Netflix’s stock slid in after-hours trading. Investors reacted to the company’s 2026 outlook, which missed expectations in some areas and weighed on sentiment. Shares fell more than 4% as markets digested the mixed message.
But the story goes well beyond quarterly results. Netflix’s leadership continues to pursue a bold acquisition of Warner Bros. Discovery, which would dramatically expand its content library. The company has amended its offer to an all-cash deal valued at more than $80 billion to fend off a rival bid from Paramount Skydance.
In announcing the revised bid, Co-CEO Ted Sarandos said the all-cash offer would “enable an expedited timeline to a stockholder vote and provide greater financial certainty.”
Netflix also plans to boost programming investment by roughly 10% in 2026 to create even more compelling series, films, and live experiences. The company’s ad-supported subscription tier, launched in late 2022, continues to grow rapidly and has helped Netflix nearly double its advertising revenue. It aims to hit about $3 billion in ad sales in 2026.
Looking ahead, Netflix projects 2026 revenue between $50.7 billion and $51.7 billion, reflecting aspirations to broaden its offerings and reach even more viewers worldwide.
As competitors proliferate, Netflix’s mix of global subscribers, new content spending, and strategic moves gives it a unique edge in the streaming wars. But with markets watching each forecast and deal closely, every quarter now feels like a turning point.
