NEW YORK, April 23, 2026, 15:45 EDT
- Netflix just cleared another $25 billion for share repurchases, tacking that onto the $6.8 billion still available from its previous authorization.
- Netflix hovered near $93.22 in the afternoon, barely budging after hitting $94.96 earlier in the session.
- Netflix is turning investor attention to capital returns, fresh off its decision to scrap a Warner Bros Discovery tie-up and pocket a $2.8 billion break-up fee.
Netflix shares barely budged Thursday, as the streamer signed off on a fresh $25 billion share buyback plan—offering investors more insight into its cash strategy after the collapsed bid for Warner Bros Discovery assets. Share buybacks reduce the total number of outstanding shares by having a company purchase its own stock.
Timing is key here. Netflix aims to shift the narrative for Wall Street after last week’s weak Q2 outlook, a failed high-profile media partnership, and lingering concerns about streaming’s growth ceiling. Shares were up 1.5% before the bell on the buyback announcement, according to Reuters.
The filing indicates there’s no expiration set for the new buyback authorization, which adds to the program Netflix’s board cleared back in December 2024. As of March 31, the company had roughly $6.8 billion remaining from that earlier plan.
Netflix reported a 16% jump in first-quarter revenue to $12.25 billion, according to its latest shareholder letter. Operating income climbed 18%, landing near $4.0 billion. For 2026, the company is holding steady on its revenue outlook—still projecting between $50.7 billion and $51.7 billion. The expected operating margin remains at 31.5%.
The company is projecting $12.57 billion in revenue for the second quarter and diluted EPS at 78 cents. Content costs are set to weigh more in the first half, management said. For 2026, the second quarter stands out: it should see the sharpest jump in year-over-year content amortization—the accounting measure for films and shows.
Cash figures are in focus. Netflix reported first-quarter free cash flow jumped to $5.1 billion, up from $2.7 billion a year ago, boosted by the $2.8 billion Warner Bros-related termination fee. The company’s latest outlook puts 2026 free cash flow at about $12.5 billion, up from the previous $11 billion forecast.
That busted Warner Bros deal continues to weigh on shares. Netflix tried to snap up Warner Bros Discovery for $72 billion, but dropped the bid in February. Reuters said Paramount Skydance will pay Netflix a termination fee connected to Skydance’s separate $110 billion Warner Bros Discovery offer.
Ross Benes, a senior analyst at Emarketer, noted the buyback “provides some answers” about Netflix’s next moves after taking in breakup-fee cash. Still, Benes pointed out, investors don’t yet know where the company will put that money to work. That uncertainty hangs over NFLX holders. Reuters
Netflix is telling investors it’s counting on ads, live shows, gaming, and mobile video to drive growth. The company reiterated its advertising sales should hit $3 billion in 2026—about twice what it saw last year—and reported a 70% jump in ad clients over the past year, now tallying more than 4,000.
The fight for viewers isn’t letting up. Netflix still counts Alphabet, Amazon, Disney—and, crucially, Meta, Roblox, TikTok, plus a range of regional media firms—among its top rivals for ad spending, mobile eyeballs and, of course, screen time. The company summed up its strategy this way: the “best thing” is to “stay focused and improve faster than the competition.”
There’s a catch: a buyback won’t fix sluggish growth if Netflix’s guidance misses again. According to the filing, the company isn’t on the hook to buy back a set amount of stock—how much and when depends on share price, economic and market shifts, and whatever else Netflix might want to put its money into. The company can call off repurchases whenever it wants.
Netflix said co-founder and Chairman Reed Hastings won’t seek another term on the board, with his seat set to expire at the annual meeting in June. The company described this as part of a broader governance shift. Still, the announcement lands as investors debate Netflix’s leadership, capital spending, and allocation strategy following an eventful run for the stock.
