Africa-Press – Lesotho. Netflix’s net income surged 82.7% year-on-year in the first quarter of 2026, boosted by a $2.8 billion termination fee linked to a failed Warner Bros. transaction, while revenue rose 16.2%, according to its shareholder letter released late Thursday.
Revenue climbed to $12.25 billion in the January-March period from $10.54 billion a year earlier, the company said.
Net income increased to $5.28 billion from $2.89 billion over the same period, while diluted earnings per share rose to $1.23 from $0.66, exceeding the company’s forecast of $0.76.
Netflix said results were driven by stronger-than-expected operating income and the $2.8 billion termination fee, which was recorded under interest and other income.
The company said revenue growth was supported by membership gains, higher subscription prices, and increased advertising revenue.
Operating income rose 18% year-on-year to $3.96 billion, while operating margin improved to 32.3% from 31.7%.
Netflix expects second-quarter revenue of $12.57 billion, marking a projected 13.5% annual increase. It maintained its full-year 2026 revenue forecast in the range of $50.7 billion to $51.7 billion and kept its operating margin target at 31.5%.
In the same letter, the company said co-founder Reed Hastings will not seek re-election to the board when his term expires at the annual meeting in June, as he plans to focus on philanthropy and other pursuits.
