Netflix delivers solid 4th quarter, but stock sinks amid worries about
slowing subscriber growth
[January 21, 2026] By
MICHAEL LIEDTKE
Netflix capped last year with another solid financial performance
despite slowing subscriber growth that underscored the importance of its
contested $72 billion bid to take over Warner Bros.’ movie studio and
slot HBO Max into its video streaming line-up.
The fourth-quarter results announced Tuesday eclipsed the projections of
stock market analysts, but Netflix's report also noted that the video
service ended the year with more than 325 million worldwide subscribers,
a figure indicating it has added about 23 million subscribers since
2024.
The 2025 subscriber increase marked a dramatic slowdown from the 41
million picked up during 2024, amplifying investor worries that
Netflix's growth has peaked since the 2022 introduction of a low-priced,
advertising-supported version of its service that triggered a massive
surge in subscribers.
Management also forecast a profit for the January-March period that was
below analysts' predictions and announced Netflix would stop buying back
its own stock while trying to complete the Warner Bros' deal. Even
though its ad sales are expected to double, Netflix also projected its
revenue growth would taper off from 16% in 2025 to 12% to 14% this year.
“Overall, this points to a challenging start to the year," said
Investing.com analyst Thomas Monteiro.
Netflix's shares sank nearly 5% in extended trading, even though its
profit and revenue for the past quarter were better than anticipated.
The company earned $2.4 billion, or 56 cents per share, 29% increase
from the same time in the previous year. Revenue rose 18% from the
previous year to more than $12 billion.
The results almost seemed like a footnote next to the stakes involved in
Netflix’s bidding war to buy Warner Bros. Discovery .
The battle took another turn earlier Tuesday when Netflix converted its
original offer that included a stock component into an all-cash deal in
hopes of simplifying the process and making it easier for Warner Bros.
Discovery shareholders to resist Paramount’s overtures.
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A Netflix sign is displayed atop a building in Los Angeles, on Dec.
18, 2025, with the Hollywood sign in the distance. (AP Photo/Jae C.
Hong, File)
 Although Warner Bros. has reiterated
its commitment to getting the Netflix deal done, Paramount isn’t
showing any signs of backing down and could still sweeten its
counteroffer to turn up the heat another notch.
Netflix co-CEO Ted Sarandos seemed to send a warning shot across
Paramount's bow during a Tuesday conference call as he recalled
fending off rivals such as Walmart and the now-vanquished
Blockbuster video chain during the company's days as a DVD-by-mail
rental service. “We are no strangers to competition and we are now
strangers to change,” Sarandos said.
Besides having to fend off Paramount, Netflix will also need to
persuade U.S. regulators that adding HBO to a streaming service that
has the most subscribers in the country won’t stifle competition and
drive up prices that have already been rising in recent years.
The uncertainty has been reflected in Netflix’s stock price, which
has fallen by20% since its agreement with Warner Bros. Discovery was
unveiled last month. It’s a cloud likely to hang over Netflix
through most of this year because the company doesn't expect to
complete its purchase until Warner Bros. Discovery spins off its
cable TV business — a process expected to take six to nine months.
“We are energized as ever to achieve our mission to entertain the
world,” Sarandos said.
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