Business
Netflix posts narrow earnings beat, reports 325 million global subscribers
Algi Febri Sugita | SOPA Images | Lightrocket | Getty Images
Netflix said on Tuesday it had reached 325 million global paid subscribers, a new milestone for the streaming giant that last reported membership numbers a year ago.
The company reported fourth-quarter earnings and revenue that narrowly beat Wall Street estimates. Here’s how Netflix performed for the period ended Dec. 31, compared with estimates from analysts polled by LSEG:
- Earnings per share: 56 cents vs. 55 cents, estimated
- Revenue: $12.05 billion vs $11.97 billion, estimated
Net income for the fourth quarter was $2.42 billion, or 56 cents per share, up from $1.87 billion, or 43 cents per share, during the same period a year earlier.
Netflix said revenue during the period rose 18% year over year, driven by membership growth, higher subscription pricing and increased advertising revenue. In recent years Netflix has been focused on growing its ad-supported membership tier.
Netflix launched its ad-supported option in late 2022. On Tuesday, it said 2025 ad revenue grew by more than 2.5-times from 2024 to over $1.5 billion.
The company said it expects 2026 overall revenue to range between $50.7 billion and $51.7 billion, due to increases in membership and pricing, as well as “a projected rough doubling of ad revenue in 2026” compared to the prior year.
On Tuesday’s earnings call with investors, Netflix leaders noted what they described as heated competition among industry peers when it comes to gaining subscribers and growing profitability.
“Looking ahead to ’26 we’re focused on improving the core business, you know, and we do that by increasing the variety and quality of our series and films,” said co-CEO Ted Sarandos.
Still, Netflix’s stock was down more than 4% in after-market trading on Tuesday.
Netflix’s report drew comparisons to a Wall Street Journal report from April that outlined ambitious internal financial targets at the streamer. By those lofty standards, Netflix’s growth underwhelmed.
But co-CEO Greg Peters said Tuesday the internal targets were considered “long-term aspirations” and not to be confused with a forecast.
“Having said that, those goals were based on organic process,” Peters added, noting they didn’t take into account the impact of mergers and acquisitions.
WBD deal update
Netflix’s quarterly report comes against the backdrop of its proposed transaction of Warner Bros. Discovery’s streaming and film studio assets. The company announcement in December that it had agreed to acquire streamer HBO Max and the Warner Bros. film studio for $27.75 per WBD share, or an equity value of $72 billion.
Earlier on Tuesday Netflix amended its offer to be all-cash. The company said Tuesday it would pause share repurchases to fund the acquisition.
Netflix said in its letter to shareholders that it believes the transaction will “allow us to accelerate our business strategy.”
Netflix said Warner Bros.’ library, development and intellectual property will allow it to boost its content selection for members and that HBO Max will help to “offer more personalized and flexible subscription options.”
However, the proposed acquisition came as a shock to the market as the streaming giant has long stayed away from industry consolidation and mega deals. Since October, when Netflix was first rumored to be interested in the assets, the company’s stock has dropped nearly 30%.
And the potential acquisition has not been without its bumps. Soon after announcing the deal with Netflix, Paramount Skydance launched a hostile effort to buy all of WBD. Lawmakers and industry insiders have also raised questions about whether the Netflix deal could win necessary regulatory approval.
“We’re working really hard to close the acquisition of Warner Bros. Studios and HBO, which we see as a strategic accelerant,” Sarandos said on Tuesday’s call. “And we’re doing all this while we’re driving and sustaining healthy growth.”
Netflix has started the regulatory process, Sarandos said, adding he is confident the company will be able to secure regulatory approval “because this deal is pro-consumer, … pro-innovation, pro-worker.”
The company has repeatedly argued the combination would preserve jobs during a time of heavy layoffs across media. On Tuesday, Sarandos said the Warner Bros. assets would bring the addition of businesses that don’t already exist for Netflix.
“We’re going to need those teams, these folks that have extensive experience and expertise. We want them to stay on and run those business,” Sarandos said. “So we’re expanding content creation, not collapsing it in this transaction.”
Sarandos and Peters both discussed the high level of competition in the media industry, which they said spans various platforms — from traditional TV to social media platforms like YouTube.
Proving that Netflix is a small part of an expansive competitive landscape is likely to be key to Netflix’s argument to antitrust regulators, CNBC previously reported.
MUMBAI: Nearly four out of five of India’s leading young entrepreneurs are self-made, underscoring a shift in the country’s business landscape from inheritance to merit, according to the Avendus Wealth – Hurun India Uth Series 2025. The report shows that about 80% of business leaders under 40 featured in the ranking are first-generation founders.The study tracks entrepreneurs aged up to 40 whose companies meet minimum valuation thresholds ranging from $25 million to $200 million, based on age cohort and whether the founder is first- or next-generation. Of the 436 entrepreneurs shortlisted, 349 are self-made, pointing to a growing ecosystem driven by new ideas and technology rather than legacy ownership.Among first-generation founders, Ritesh Agarwal, founder of OYO, leads the list. At 31, Agarwal has built one of the most capitalised startups in the country, raising $3.7 billion. He is followed by Aadit Palicha and Kaivalya Vohra, both 22, whose quick-commerce firm Zepto has raised $1.95 billion.Other prominent first-generation entrepreneurs include Nikhil Kamath of Zerodha, now among India’s most-followed entrepreneurs on LinkedIn; Alakh Pandey of Physics Wallah, who disrupted the ed-tech space; and Ghazal Alagh, the most-followed woman entrepreneur on the list.Next-generation leaders account for about 20% of the ranking and continue to shape large family-run businesses. Key names include Isha Ambani of Reliance Retail, which employs more than 2.47 lakh people; Abhyuday Jindal, who is driving sustainability initiatives at Jindal Stainless; and Vidhi Shanghvi, who recently led Sun Pharmaceutical’s $355 million acquisition of US-based Checkpoint Therapeutics.The report categorises entrepreneurs across three age groups—under 30, under 35 and under 40. Together, the companies led by these 436 entrepreneurs are valued at more than $950 billion, higher than Switzerland’s GDP. Bengaluru tops the list with 109 entrants, followed by Mumbai with 87 and New Delhi with 45. Software products and services dominate with 77 entrepreneurs, ahead of financial services and healthcare, highlighting the tilt toward digital and technology-led businesses.
Kevin PeacheyCost of living correspondent
Getty ImagesThe Bank of England has cut interest rates from 4% to 3.75%, the lowest level since February 2023.
Analysts are divided about whether the Bank will cut again when it next meets in February.
Interest rates affect mortgage, credit card and savings rates for millions of people.
What are interest rates and why do they change?
An interest rate tells you how much it costs to borrow money, or the reward for saving it.
The Bank of England’s base rate is what it charges other banks and building societies to borrow money, which influences what they charge their own customers for mortgages as well as the interest rate they pay on savings.
The Bank moves interest rates up and down in order to keep UK inflation – the rate at which prices are increasing – at or near 2%.
When inflation is above that target, the Bank typically puts rates up. The idea is that this encourages people to spend less, reducing demand for goods and services and limiting price rises.
What has been happening to UK interest rates and inflation?
The main inflation measure, CPI, has dropped significantly since the high of 11.1% recorded in October 2022.
However, it was 3.4% in the year to December 2025 – up from 3.2% in November, and slightly higher than analysts had expected.
The Office for National Statistics (ONS) – which measures inflation – said the increase was driven by higher tobacco prices and the cost of airfares over the Christmas and New Year period.
The Bank of England’s base rate reached a recent high of 5.25% in 2023. It remained at that level until August 2024, when the Bank started cutting.
Five cuts brought rates down to 4%, before the Bank held rates at its meetings in September and November 2025 before the December cut.
Are interest rates expected to fall again?
Most analysts had expected the December cut, but the vote among members of the nine-member monetary policy committee (MPC) was divided, with only five in favour.
The Bank said rates were likely to continue dropping in the future, but warned decisions on further cuts in 2026 would be contested.
“We still think rates are on a gradual path downward but with every cut we make, how much further we go becomes a closer call,” said the Bank’s governor Andrew Bailey.
If inflation continues to rise – or just fails to fall – further rate cuts are less likely.
Mr Bailey has also repeatedly warned about the continuing impact of US tariffs, and political uncertainty around the world.
The next interest rate decision is on Thursday 5 February.
How do interest rate cuts affect mortgages, loans and savings rates?
Getty ImagesMortgages
Just under a third of households have a mortgage, according to the government’s English Housing Survey.
About 500,000 homeowners have a mortgage that “tracks” the Bank of England’s rate. A 0.25 percentage point cut is likely to mean a reduction of £29 in the monthly repayments for the average outstanding loan.
For the additional 500,000 homeowners on standard variable (SVR) rates – assuming their lender passed on the benchmark rate cut – there would typically be a £14 a month fall in monthly payments for the average outstanding loan.
But the vast majority of mortgage customers have fixed-rate deals. While their monthly payments aren’t immediately affected by a rate change, future deals are.
Mortgage rates have been falling recently, partly owing to the expectation the Bank would cut rates in December.
As of 21 January, the average two-year fixed residential mortgage rate was 4.77%, according to financial information company Moneyfacts. A five-year rate was 4.87%.
The average two-year tracker rate was 4.41%.
About 800,000 fixed-rate mortgages with an interest rate of 3% or below are expected to expire every year, on average, until the end of 2027. Borrowing costs for customers coming off those deals are expected to rise sharply.
Mortgage calculator
You can see how your mortgage may be affected by future interest rate changes by using our calculator:
Credit cards and loans
Bank of England interest rates also influence the amount charged on credit cards, bank loans and car loans.
Lenders can decide to reduce their own interest rates if Bank cuts make borrowing costs cheaper.
However, this tends to happen very slowly.
Getty ImagesSavings
The Bank base rate also affects how much savers earn on their money.
A falling base rate is likely to mean a reduction in the returns offered to savers by banks and building societies.
The current average rate for an easy access savings account is 2.45%, according to Moneyfacts.
Any further cut in rates could particularly affect those who rely on the interest from their savings to top up their income.
What is happening to interest rates in other countries?
In recent years, the UK has had one of the highest interest rates in the G7 – the group representing the world’s seven largest so-called “advanced” economies.
In June 2024, the European Central Bank (ECB) started to cut its main interest rate for the eurozone from an all-time high of 4%.
At its meeting in June 2025 the ECB cut rates by 0.25 percentage points to 2% where they have remained.
The US central bank – the Federal Reserve – has cut interest rates three times since September 2025, taking them to the current range of 3.5% to 3.75%, the lowest since 2022.
President Trump had repeatedly attacked the Fed for not cutting earlier.
Inflation has risen to 3.4% in the year to December, driven by higher tobacco prices and airfares, according to official figures.
The increase in average prices across the UK economy – the first in five months – was just above expectations, with many economists predicting only a slight uptick to 3.3%.
The cost of airfares was a contributor “likely because of the timing of return flights over the Christmas and New Year period”, the Office for National Statistics (ONS) said. It also reflected an increase in tobacco duty introduced in late November.
It is the last set of monthly inflation figures released before the Bank of England’s decision on interest rates in February.
In addition to tobacco and transport prices, “rising food costs, particularly for bread and cereals, were also an upward driver,” said ONS chief economist Grant Fitzner.
“These were partially offset by a fall in rents inflation and lower prices for a range of recreational and cultural purchases.”
In response to the figures, Chancellor Rachel Reeves said her priority was cutting the cost of living, citing measures in her November Budget including a freeze to rail fares and prescription charges.
“Money off bills and into the pockets of working people is my choice.
“There’s more to do, but this is the year that Britain turns a corner,” Reeves said.
Inflation in the UK is a measure of the Consumer Prices Index, which is a virtual basket of hundreds of everyday goods and services selected by the ONS that includes things like bread, fruit, furniture and different items of clothing.
The prices of these items are tracked by the ONS over the previous 12 months, and the basket is regularly updated to reflect shopping trends.
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