Netflix, Inc. (NFLX) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and welcome to the Netflix Q1 2026 earnings interview. I'm Spencer Wong, VP of Finance and Capital Markets. Joining me today are co-CEOs Ted Sarandos and Greg Peters and CFO Spence Newman. As a reminder, we'll be making forward-looking statements and actual results may vary. We'll now take questions submitted by the analyst community and we'll begin on the topic of our results and outlook. The first question comes from Robert Fishman of Moffitt Nathanson. This question is, can you speak to your full year margin guidance and how it compares to prior guidance with the Warner Brothers deal costs? And beyond content spending, where else are you accelerating investment in 2026? Perhaps I can kick this one off and just sort of step back and do a little bit of high-level framing. Of course, it's early in the year. There's still plenty of time to go, plenty of work left to go do. But we've seen really good progress so far in this first quarter that builds on the solid momentum and results from 2025. Given that, we are maintaining our guidance, our strong outlook for organic growth that we established for 2026. That's revenue growth of 12% to 14%, operating margin at 31.5%. That includes roughly doubling the advertising business to about $3 billion U.S. dollars. Now, we ended last year with more than 325 million paid members. And as that number continues to grow, we are entertaining an audience that is approaching a billion people, which is an exciting milestone to strive for and will be an exciting milestone to achieve. But even given that number, we still have plenty of room to grow into our addressable market. So if you look at it from an addressable household perspectives that have good data, that have a smart TV, all those things that we think are enabling...