Netflix Beats Earnings, Shares Fall as Warner Bros. Deal Talks Drag On

Netflix Studios, with the Hollywood sign in the distance, in Los Angeles on Dec. 5, 2025. Mario Tama/Getty ImagesDespite having a strong fourth-quarter earnings report and surpassing the 325 million paid subscribers milestone in 2025, “Stranger Things” streamer Netflix’s share prices dropped on Jan. 21 as it remains entrenched in a bidding war for Warner Bros. Discovery.Netflix reported revenue of $12.05 billion for the quarter ending on Dec. 31, 2025, an 18 percent year-over-year increase that topped analyst forecasts by 0.67 percent. Adjusted earnings per share of $0.06 also beat estimates by 1.82 percent. Revenue for the year totaled $42.5 billion, up by 16 percent year over year.