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Netflix will report fourth-quarter earnings after Tuesday’s call, with acquisitions expected. Warner Bros. Discovery’s Assets are the most important thing for investors.
In recent years, Netflix’s quarterly reports have been mostly stable — me except miss on assessment of last quarter’s income due to unique lump sum payment. Netflix stopped reporting subscriber numbers in early 2025 — when it said it had More than 300 million global subscribers – and instead focused on strategic changes to develop an ad-supported business.
For several quarters, Wall Street has paid particular attention to the ad-supported business, any effects recent price increase in the subscriber base and content pipeline of Netflix.
Here’s how the company is expected to perform in the fourth quarter, according to analysts polled by LSEG:
- Earnings per share: 55 cents according to LSEG
- Input: $11.97 billion, according to LSEG
However, this quarter’s financials may be overshadowed by Netflix’s December announcement.agreed to buy r Warner Bros. Discovery’s streaming and movie studio assets are worth $27.75 per WBD share, or $72 billion in equity.
The proposed acquisition came as a surprise to the market as the streaming giant has long avoided industry consolidation and mega deals.
Mike Proulx, vice president and director of research at Forrester, said: “Q4 was a great turnaround for Netflix, marked by bold changes to drive growth beyond its core. “This is unusual for a company that bills itself as builders rather than buyers. However, Netflix’s Q4 performance suggests otherwise.”
Since the announcement, Netflix shares have fallen in response. The company’s stock has fallen nearly 30% since October, when rumors surfaced that Netflix was interested in the assets.
And the potential acquisition did not fail. Shortly after announcing the deal with Netflix, Paramount Skydance has been activated hostile action buy all WBD.
As Paramount’s pressure to buy WBD increased, Netflix fixed this week his offer is all cash. In addition, it happened questions on whether Netflix’s acquisition of WBD receives the necessary regulatory approvals.
“2026 will be a defining year for Netflix. If the Warner Bros. deal goes through, it will replace the nascent Netflix not only in the streaming market, but in the entertainment industry as a whole. But this fight is only the beginning. Expect a lot of drama as the bidding war ends this year,” Proulx said.
This story is evolving. Check back for updates.