-8.29% in 5 minutes📉🔴

Yes, this happens on equity markets—even on days when stock indices trade at all-time highs. Netflix $NFLX just showed us that live.

Q1 2026 results beat expectations

Netflix reported first-quarter revenue of $12.25 billion versus the market estimate of $12.17 billion.

Adjusted earnings per share reached $1.23 versus the consensus of $0.76.

For comparison, in the same quarter last year the company reported revenue of $10.54 billion and earnings of $0.66 per share, so that’s roughly a 16% year‑over‑year revenue increase and nearly double EPS.

Yet the stock is plunging after the results!

Guidance for Q2 disappointed. Netflix expects revenue of $12.57 billion, while Wall Street was modeling $12.64 billion. The EPS outlook of $0.78 missed the $0.84 consensus, and operating income of $4.11 billion was well below the Street consensus of $4.34 billion. Shares are down as much as 9.72% in after-hours trading.

Founder departure

Reed Hastings, the company’s co‑founder, announced he will leave the board in June. Hastings stepped down as co‑CEO in January 2023, then moved to executive chairman, and last spring shifted to a non‑executive chairman role. This is his final farewell to the company he built from scratch. Day‑to‑day leadership is handled by co‑CEOs Ted Sarandos and Greg Peters.

Lost battle for Warner Bros $WBD

This is also the first report after the unsuccessful bid to acquire Warner Bros. Discovery $WBD. The offer was ultimately won by Paramount Skydance $PSKY, and Netflix ended up with a breakup fee of $2.8 billion, which analysts say could be invested in content and advertising infrastructure.

Advertising is becoming a second growth engine. Ad revenue in 2025 grew more than 2.5x to $1.5 billion, and management is targeting a doubling to $3 billion in 2026.

Price increases as a sign of strength

Netflix $NFLX raised prices across all subscription tiers in March. The ad‑supported Standard tier rose by $1 to $8.99 per month, while the ad‑free Standard and Premium tiers rose by $2 to $19.99 and $26.99. These price adjustments were expected to bring roughly $1.5 billion in additional revenue in 2026.

How are the shares performing?

Shares of $NFLX traded around $107.71 before the results. Year‑to‑date they were up about 15%, but after the recent drop due to the weaker outlook they’re trading below $100.

Do you have $NFLX in your portfolio, or do you find it too expensive at these levels?