Netflix Authorizes $25 Billion Share Buyback After Stock Falls 10% on Q1 Earnings
April 23, 2026 - 12:02 pm
Netflix's board approved an additional $25 billion share repurchase program on April 22, 2026, with no expiration date. This is in addition to a buyback authorized in December 2024 that still had $6.8 billion remaining. The announcement comes after a disappointing financial outlook sent shares plunging following Netflix's Q1 earnings release on April 16th.
The Q1 report itself showed mixed results:
- Revenue grew 16% year-over-year to $12.25 billion, beating the $12.18 billion analyst consensus.
- Earnings per share (EPS) reached $1.23, exceeding Netflix's forecast of $0.76, but this figure was inflated by a $2.8 billion termination fee received after withdrawing from acquiring Warner Bros. Discovery’s streaming and studio assets.
- Stripping out the one-time charge, underlying EPS from operations was approximately $0.58.
- Paid members exceeded 325 million globally, with the ad-supported tier reaching 190 million monthly active viewers in 12 countries.
Netflix had bid $82-$83 billion for Warner Bros. Discovery's assets but ultimately backed out in late February 2026, triggering the $2.8 billion termination fee payment.
The share price reaction that prompted the buyback was due to:
- Q2 2026 revenue guidance of $12.574 billion being slightly below analyst consensus of $12.63 billion.
- Full-year 2026 operating margin guidance maintained at 31.5%, below the consensus of 32%.
- Increased prices in the U.S. by approximately 11% effective late March.