Netflix Inc (NASDAQ:NFLX) stock fell 4.73% (As on January 21, 11:16:15 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings and revenue that narrowly beat Wall Street estimates. The company had reached 325 million global paid subscribers, a new milestone for the streaming giant that last reported membership numbers a year ago. In the second half of 2025, Netflix users watched a collective 96 billion hours on the service, up 2% year over year (compared with a 1% increase in the first half of the year). That was driven by viewing of Netflix originals, which was up 9% year over year in the second half of 2025. Net income for the fourth quarter was $2.42 billion, up from $1.87 billion during the same period a year earlier.

Meanwhile, Netflix’s quarterly report comes against the backdrop of its proposed transaction of Warner Bros. Discovery’s streaming and film studio assets. The company announcement in December that it had agreed to acquire streamer HBO Max and the Warner Bros. film studio for $27.75 per WBD share, or an equity value of $72 billion. Earlier on Tuesday Netflix amended its offer to be all-cash. The company said Tuesday it would pause share repurchases to fund the acquisition. Netflix said in its letter to shareholders that it believes the transaction will “allow us to accelerate our business strategy.” Netflix said Warner Bros.′ library, development and intellectual property will allow it to boost its content selection for members and that HBO Max will help to “offer more personalized and flexible subscription options.” However, the proposed acquisition came as a shock to the market as the streaming giant has long stayed away from industry consolidation and mega deals

NFLX in the fourth quarter of FY25 has reported the adjusted earnings per share of $0.56, beating the analysts’ estimates for the adjusted earnings per share of $0.55, according to estimates from analysts polled by LSEG. The company had reported the adjusted revenue growth of 18 percent to $12.05 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $11.97 billion. This is driven by membership growth, higher subscription pricing and increased advertising revenue. In recent years Netflix has been focused on growing its ad-supported membership tier.

The company said it expects 2026 overall revenue to range between $50.7 billion and $51.7 billion, due to increases in membership and pricing, as well as “a projected rough doubling of ad revenue in 2026” compared to the prior year.