Netflix stock is heading into its first-quarter earnings report after the bell on Thursday, with Wall Street focused on the company’s higher subscription prices and its failed bid for Warner Bros. Discovery. The streaming giant is expected to post revenue of $12. 17 billion and adjusted earnings per share of $0. 76, while investors also look for updates on advertising and subscriber growth. The report lands in Eastern Time as Netflix stock faces a new test of whether its recent moves can keep momentum intact.
Netflix stock in focus after a busy quarter
This is the first earnings update since Netflix left the negotiating table in the Warner Bros. Discovery contest, which ended with Paramount SkyDance winning the bid and agreeing to pay the breakup fee. The failed pursuit matters because it pushed investors back toward Netflix’s core business, while also highlighting how much attention is now on execution rather than expansion through a major acquisition.
Netflix stock has also been shaped by the company’s second subscription price increase in just over a year. The ad-supported Standard plan rose by $1 to $8. 99 per month, while the Standard ad-free and Premium tiers increased by $2 to $19. 99 and $26. 99 per month. Analysts watching Netflix stock see that pricing decision as an important signal heading into the numbers.
What analysts are watching
consensus data points to revenue rising from $10. 54 billion in the first quarter of last year to $12. 17 billion now. Adjusted earnings per share are expected to improve from $0. 66 a year earlier to $0. 76. The Street also expects Netflix to surpass 331 million paid subscribers worldwide in the first quarter, giving investors another key measure to weigh alongside the company’s financial results.
Needham analyst Alicia Reese said Netflix has an incremental $2. 8 billion to spend on content and ad stack improvements this year from its Warner Bros. breakup fee, and she expects that to extend its competitive lead. BMO Research analyst Brian J. Pitz said investors now see a cleaner Netflix story after the Warner Bros. deal break, with attention shifting back to core and near-term fundamentals and to whether Netflix can build a massive $10 billion-plus advertising business over time.
Why Netflix stock is under close watch now
The latest pricing changes and the end of the Warner Bros. bidding fight have left Netflix stock at the center of a broader debate about growth, pricing power, and ad expansion. Bank of America analyst Jessica Reif Ehrlich said the price increases show strength, calling them a validator of Netflix’s confidence in its underlying durability. That view gives the quarter extra weight as investors look for proof that the company can convert pricing and product changes into stronger results.
Warner Bros. shareholders are set to vote next week on the $110 billion offer, keeping that story active in the background. For now, the main event is Thursday’s report, and Netflix stock will likely react first to what the company says about revenue, pricing, and advertising momentum in the months ahead.
