Netflix delivers solid 4th quarter, but stock sinks amid worries about slowing subscriber growth

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Netflix capped past twelvemonth with different coagulated fiscal show contempt slowing subscriber maturation that underscored the value of its contested $72 cardinal bid to instrumentality implicit Warner Bros

ByMICHAEL LIEDTKE AP exertion writer

January 20, 2026, 5:03 PM

The fourth-quarter results announced Tuesday eclipsed the projections of banal marketplace analysts, but Netflix's study besides noted that the video work ended the twelvemonth with much than 325 cardinal worldwide subscribers, a fig indicating it has added astir 23 cardinal subscribers since 2024.

The 2025 subscriber summation marked a melodramatic slowdown from the 41 cardinal picked up during 2024, amplifying capitalist worries that Netflix's maturation has peaked since the 2022 instauration of a low-priced, advertising-supported mentation of its work that triggered a monolithic surge successful subscribers.

Management besides forecast a nett for the January-March play that was beneath analysts' predictions and announced Netflix would halt buying backmost its ain banal portion trying to implicit the Warner Bros' deal.

“Overall, this points to a challenging commencement to the year," said Investing.com expert Thomas Monteiro.

Netflix's shares sank 5% successful extended trading, adjacent though its nett and gross for the past 4th were amended than anticipated. The institution earned $2.4 billion, oregon 56 cents per share, 29% summation from the aforesaid clip successful the erstwhile year. Revenue roseate 18% from the erstwhile twelvemonth to much than $12 billion.

The results astir seemed similar a footnote adjacent to the stakes progressive successful Netflix’s bidding warfare to bargain Warner Bros. Discovery .

The tug-of-war took different crook earlier Tuesday erstwhile Netflix converted its archetypal connection that included a banal constituent into an all-cash woody successful hopes of simplifying the process and making it easier for Warner Bros. Discovery shareholders to defy Paramount’s overtures.

Although Warner Bros. has reiterated its committedness to getting the Netflix woody done, Paramount isn’t showing immoderate signs of backing down and could inactive sweeten its counteroffer to crook up the vigor different notch.

Besides having to fend disconnected Paramount, Netflix volition besides request to transportation U.S. regulators that adding HBO to a streaming work that has the astir subscribers successful the state won’t stifle contention and thrust up prices that person already been rising successful caller years.

The uncertainty has been reflected successful Netflix’s banal price, which has fallen by20% since its statement with Warner Bros. Discovery was unveiled past month. It’s a unreality apt to bent implicit Netflix done astir of this twelvemonth due to the fact that the institution doesn't expect to implicit its acquisition until Warner Bros. Discovery spins disconnected its cablegram TV concern — a process expected to instrumentality six to 9 months.