Netflix Inc (NASDAQ:NFLX, XETRA:NFC) shares fell almost 4% after Tuesday’s closing bell as the streaming giant’s guidance disappointed.
For Q1, Netflix projected revenue of $12.16 billion, a 15.3% year-over-year increase. This was slightly below Wall Street estimates of $12.18 billion. The company also guided earnings per share (EPS) of $0.76, below the $0.81 expected.
For the full year, Netflix guided revenue in the range of $50.7 billion to $51.7 billion, representing growth of 12% to 14%, at the midpoint in line with the consensus of 13% growth.
The weak Q1 guidance drew focus from better-than-expected results for the fourth quarter, with revenue of $12.05 billion, a 17.6% increase from the year-ago period, topping estimates of $11.97 billion. EPS of $0.56 also beat the consensus of $0.55.
Netflix noted that it crossed 325 million subscribers during the holiday quarter.
For the full-year, Netflix posted revenue of $45.2 billion, up 16% year-over-year and ahead of the consensus of $45.1 billion. EPS of $2.53 was in line with expectations.
“With our strong Q4 results, we met or exceeded all of our full-year 2025 financial objectives,” the company said in a letter to shareholders.