Netflix’s fourth-quarter revenue increased by 17% year over year, with full-year revenue also up by 17%. Operating margin expanded to 29.5%. Sales in the US and Canada rose by 15% in 2025. International sales growth was estimated to be only 14% in recent quarters. Netflix expects organic sales growth of 11%-13% in 2026.

The slowdown in growth aligns with predictions for a mature US market. Netflix needs high-teens growth in international markets to maintain midteens annual growth, but recent results fall short. Free cash flow guidance for 2026 is USD 11 billion, with cash content spending expected to reach nearly USD 20 billion, a 11.5% increase.

Maintaining a forecast, Netflix’s fair value estimate is now USD 79, up from USD 77. With growth expectations no longer factored into the stock price, Netflix is considered fairly valued. The company remains the highest-quality among its peers, with a narrow moat. Some costs pushed to 2026 make cash flow and margin guidance less disappointing than initially perceived.

Read more at Morningstar: Netflix Earnings: Strong, as Expected; 2026 Guidance Confirms Decelerating Growth