Abu Dhabi, UAE – April 13, 2026: Netflix is entering its first-quarter earnings season with renewed investor focus on fundamentals, following a series of strategic shifts that have reshaped market sentiment, according to analysis from eToro.
The streaming giant has guided for Q1 revenue of $12.16 billion, representing around 15% year-on-year growth, alongside earnings per share of $0.76. For the full year, the company expects revenue between $50.7 billion and $51.7 billion, with an operating margin of 31.5%, up from 29.5% in 2025.
According to Josh Gilbert, Market Analyst at eToro, Netflix’s decision to abandon a potential deal with Warner Bros. Discovery in March has removed a key overhang for investors, allowing attention to shift back to core growth drivers.
“Netflix is heading into this earnings season with a cleaner narrative,” Gilbert said. “With the Warner deal off the table, investor focus can return squarely to fundamentals.”
The company has also resumed its share buyback programme and implemented price increases in the United States, further supporting investor confidence ahead of the results.
Advertising Emerges as Second Growth Engine
A key focus for investors this quarter is Netflix’s expanding advertising business. After surpassing 325 million subscribers globally, advertising revenue more than doubled in 2025 to approximately $1.5 billion, and is projected to reach $3 billion this year.
“Advertising is quickly becoming a critical second revenue engine,” Gilbert said. “If Q1 confirms continued momentum in the ad-supported tier, it strengthens the case for higher-margin growth beyond subscriptions.”
Content Spending and Profitability in Focus
With plans to allocate around $20 billion to content spending in 2026, markets will closely assess whether Netflix can sustain growth while maintaining profitability.
The pressure comes after the company’s previous earnings missed expectations, particularly on forward guidance, placing added scrutiny on upcoming results.
Pivotal Quarter Ahead
With the Warner deal no longer in play, share buybacks back on track, and advertising scaling rapidly, Netflix is seen entering a pivotal quarter.
“This is a key moment for Netflix to reaffirm its leadership in the streaming sector,” Gilbert added.
