Netflix is set to report first-quarter results after the bell on Thursday, its first earnings update since it walked away from the bidding fight for Warner Bros. Discovery and saw Paramount Skydance win the deal. The company also heads into the report after raising subscription prices again, a move that gives investors a fresh read on how much pricing power it still has.
Wall Street is looking for revenue of $12.17 billion and adjusted earnings per share of $0.76, up from $10.54 billion and 66 cents a share in the same quarter a year earlier. The Street also expects Netflix to pass 331 million paid subscribers worldwide, a sign the company still has room to grow even as it tests higher prices on viewers.
The last few weeks have sharpened the focus on the stock. Netflix issued a 10-for-1 stock split in mid-November, then lost the battle over Warner Bros. Discovery to Paramount Skydance, which agreed to pay the breakup fee. Warner Bros. shareholders are scheduled to vote next week on the $110 billion offer, while Netflix moves ahead with an incremental $2.8 billion to spend on content and ad stack improvements this year from its deal break-up fee.
That extra firepower matters because investors are no longer just looking at the headline subscriber count. They want to know whether Netflix can keep turning size into profit, whether the ad business can become a major revenue engine and whether the latest price increases can hold without slowing engagement. BMO Research analyst Brian J. Pitz said investors are refocusing on core and near-term fundamentals, while Bank of America analyst Jessica Reif Ehrlich said the ability to raise prices is a sign of strength.
Netflix has raised prices for the second time in just over a year, pushing its ad-supported Standard plan up by $1 to $8.99 a month, the Standard ad-free tier up by $2 to $19.99 a month and the Premium tier up by $2 to $26.99 a month. Pitz said the changes could add about $1.5 billion in incremental revenue in 2026 estimates, equal to 3.3% growth from pricing alone. Ehrlich said the increases reflect confidence in the service’s underlying strength and durability, even after worries about engagement over the past 12 to 18 months.
This report is more than a routine quarterly checkup. It is the first since Netflix left the negotiating table on Warner Bros. Discovery, and it will show whether the company can keep convincing investors that the story is still about execution, not just ambition.