Netflix reported a 16% year-on-year revenue growth in the first quarter of 2026, with the Asia-Pacific region showing the largest increase, according to the company’s Thursday announcement [1][2]. The streaming giant posted $12.25 billion in revenue for the quarter, surpassing analyst expectations of $12.18 billion and up from $10.54 billion in the same period last year [2]. Net income reached $5.28 billion, or $1.23 per share, nearly double the $2.89 billion, or 66 cents per share, reported a year ago. This significant jump was attributed in part to a $2.8 billion termination fee received after Netflix walked away from its proposed acquisition of Warner Bros. Discovery's streaming and film assets in February [2].
Asia played a pivotal role in Netflix’s performance, with Japan leading user growth due to the World Baseball Classic, which drove a fivefold increase in Netflix downloads in the country [1]. Additionally, K-pop group BTS significantly boosted viewership and engagement, especially in South Korea, highlighting the influence of local events and celebrities on the platform’s regional success [1].
Despite the strong financial results, Netflix shares fell 9% in extended trading following the earnings release and the announcement that co-founder and chairman Reed Hastings will exit the board in June when his term expires [2]. Hastings, who stepped down as CEO in 2023, will focus on philanthropy and other pursuits. Greg Peters and Ted Sarandos continue as co-CEOs [2].
Looking ahead, Netflix maintained its full-year revenue guidance of $50.7 billion to $51.7 billion and expects second-quarter revenue to rise 13% [2]. The company reiterated that content spending will be weighted toward the first half of the year due to the timing of title launches, with the highest year-over-year content amortization growth rate expected in Q2 before declining in the second half of 2026 [2]. CFO Spencer Neumann noted that some M&A-related expenses originally planned for 2027 will now be incurred in 2026, though the total for the year remains in line with previous projections [2].
CONCLUSION
Netflix delivered robust Q1 results, driven by strong growth in Asia and a substantial one-time gain from a terminated acquisition. However, the market reacted negatively to the news of Reed Hastings' upcoming board departure and the reiteration of existing guidance, sending shares down 9%. The company remains optimistic about continued revenue growth and is adjusting its content and M&A spending plans for the remainder of 2026.