-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
NFLX delivered strong Q1 2026 results with revenue of $12.25B (+16% Y/Y, +14% FX-neutral) and operating income of $3.96B (+18% Y/Y), driving operating margin expansion to 32.3% vs. 31.7% in the prior year. Diluted EPS of $1.23 significantly exceeded consensus of $0.77, benefiting from operational performance and a $2.8B termination fee from the abandoned Warner Bros. Discovery (WBD) acquisition. We believe walking away from the WBD deal removes significant execution risk and allows NFLX to focus on organic growth initiatives across content, technology, and monetization. Management guided for 2026 revenue of $50.7B-$51.7B (12%-14% Y/Y growth) with operating margins of 31.5% vs. 29.5% in 2025. Regional performance remained strong with UCAN growing 14%, EMEA 17%, LATAM 19%, and APAC 20%. We think NFLX has pricing power and advertising revenue should accelerate in 2026 after deployment of the Netflix Ads Suite across all 12 markets. We believe NFLX is extending its global competitive advantage in video streaming.