Netflix Beats Q1 Revenue And Earnings, Yet Shares Fall On Hastings Exit And Margin Outlook
Netflix topped Q1 expectations with $12.25 billion in revenue and $1.23 per share, but shares fell after hours as investors weighed Reed Hastings’s upcoming departure and a projected 1.5% drop in operating margins for Q2. The company kept full‑year margins around 32% and cited slightly higher‑than‑planned subscription revenue, noting it ended 2025 with over 325 million global subscribers (while no longer regularly disclosing subscriber totals). It also pointed to subscriber gains tied to the World Baseball Classic in Japan and March price increases, and mentioned it had bowed out of a Warner Bros. Discovery deal, as earnings season kicks off in tech/media.
