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Price hikes, meet your biggest fan club
Netflix spent its earnings call doing the corporate version of "trust me, it’s worth it." Co-CEO Greg Peters said the company’s latest U.S. price increases were planned well in advance and argued subscribers are still getting strong value — even claiming Netflix offers the lowest cost per hour of viewing versus rival streamers. In other words: yes, the bill got bigger, but the couch time still supposedly pays for itself.
The quarter was solid. The mood, less so.
On the numbers side, Netflix did its job. Revenue came in at $12.25 billion, ahead of the $12.18 billion estimate, and EPS landed at $1.23 versus Wall Street’s 76-cent expectation. That’s a real beat, not a participation trophy. But the market wasn’t in a generous mood, because the story around Netflix right now isn’t just about what happened last quarter — it’s about how much more room there is for the stock after the streaming giant keeps raising prices and spending heavily on content.
The “don’t panic” portion of the call
Management said the early read on the latest price hikes looks fine, with CFO Spencer Neumann pointing to stronger retention across regions and record engagement in late 2025 and early 2026. That matters because streaming is a game of tiny leaks and giant boats: if subscribers start bailing after each price bump, the whole value story gets wobbly fast. So far, Netflix says the churn monster is still locked in the basement.
Why investors are still twitchy
The stock dropped 9.60% after hours to $97.44, which is the market’s way of saying, “Nice quarter, but what’s next?” Investors are clearly weighing a few things:
- Netflix just hiked U.S. prices again in March 2026.
- It’s leaning harder into original and live programming.
- It walked away from the Warner Bros. Discovery deal and pocketed a $2.8 billion breakup fee.
Big picture: Netflix is still printing strong results, but the market wants proof that price increases and content spending can keep working their magic without eventually poking the subscriber bear.