Netflix Inc (NASDAQ:NFLX, XETRA:NFC) shares fell more than 5% in after-hours trading on Tuesday, wiping $19 billion off the company’s market value, after the streaming giant issued a weaker-than-expected forecast for the first quarter.
The stock looks set to extend losses when markets open in New York.
For the current quarter, Netflix expects to generate $12.16 billion in revenue, a 15.3% increase year-on-year but just below Wall Street’s $12.18 billion forecast. Earnings per share are projected at $0.76, short of the $0.81 analysts were looking for.
The disappointing outlook overshadowed stronger-than-expected fourth-quarter results. Revenue rose 17.6% to $12.05 billion, ahead of expectations, while earnings per share of $0.56 slightly topped consensus.
Netflix also reported that it surpassed 325 million subscribers during the holiday period.
For the full year, Netflix delivered $45.2 billion in revenue, up 16% and marginally ahead of forecasts. Earnings per share came in at $2.53, in line with estimates.
The company guided 2026 revenue in the range of $50.7 billion to $51.7 billion, representing growth of up to 14% — consistent with analyst expectations.