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Investors are expected to focus on Netflix’s expansion of its advertising business and continued investment in content when the company reports quarterly earnings on Thursday. The results mark the streamer’s first update since its unsuccessful attempt to acquire Warner Bros Discovery.
A takeover of Warner Bros would have given Netflix access to major global franchises such as Game of Thrones and Friends, significantly expanding its content library without the cost of developing similar intellectual property in-house.
However, Netflix now faces increased competition from a potential combined Warner Bros–Paramount Skydance entity, should the reported $110 billion deal proceed.
Analysts, based on LSEG estimates, expect Netflix to post revenue of about $12.18 billion for the first quarter, representing growth of around 15.5%. Advertising revenue is projected at approximately $634 million.
The company’s recent price increases in the United States, implemented in March, are expected to support higher full-year revenue forecasts. At the same time, they may encourage more subscribers to shift toward Netflix’s ad-supported tier, which remains relatively small but growing.
Netflix shares have risen roughly 13% year-to-date and are up about 26% since the company exited the Warner Bros acquisition process.
Investors are increasingly looking for Netflix to strengthen its position in live programming and sports content as part of its strategy to boost advertising revenue.
According to John Belton, portfolio manager at Gabelli Funds, Netflix is entering a new phase in its advertising evolution, positioning itself as one of the largest global digital ad platforms.
During the quarter, the company expanded its live content slate, including a Seoul concert by K-pop group BTS, which attracted 18.4 million viewers worldwide. It also streamed the 2026 World Baseball Classic, which became the most-watched baseball broadcast globally online.
