Netflix reported adding 9.3 million net new subscribers in the first quarter of 2026, surpassing Wall Street‘s consensus estimate of 7.8 million and extending the streaming giant’s streak of stronger-than-expected subscriber growth into its seventh consecutive quarter. Total paid memberships reached 338 million globally at the end of March, cementing Netflix’s position as the world’s largest subscription streaming service by a margin that competitors have found difficult to narrow despite significant content investment.

Revenue for the quarter came in at $11.1 billion, up 16 percent year-over-year, while operating income rose to $3.2 billion, representing an operating margin of 29 percent and exceeding the company’s own guidance of 28 percent. Earnings per share of $6.18 beat analyst estimates of $5.73. The company raised its full-year 2026 revenue guidance to $44 billion to $45 billion, up from the prior guidance range of $43 billion to $44 billion, reflecting confidence in both subscriber growth and the continued ramp of the advertising business.

The advertising-supported tier, launched in late 2022 and significantly expanded in 2024 and 2025, was highlighted as a key growth driver. Netflix said the ad-supported plan now accounts for 45 percent of all new sign-ups globally in markets where it is available, up from 40 percent in the prior quarter, and that the total number of ad-tier subscribers has grown more than 80 percent year-over-year. Deadline reported that Netflix’s advertising revenue is now running at an annualized rate of approximately $3 billion globally, with the US and UK markets representing the largest contributors. The company said ad revenue is growing faster than subscription revenue and is expected to become a more meaningful percentage of total revenue in the second half of 2026 as the company’s programmatic ad marketplace expands and direct brand partnership revenue increases.

Co-CEO Greg Peters highlighted the performance of Netflix’s live programming strategy as a differentiator driving engagement and retention. The company’s exclusive NFL Christmas Day games in 2025, which attracted average audiences of 24 million viewers per game in the US, its live boxing and wrestling events, and its coverage of several major international sporting events have established Netflix as a meaningful player in live programming – a category that streaming services struggled to address in the early years of the industry. Peters said live programming generates significantly higher advertising rates than pre-recorded content and serves as an effective tool for subscriber reactivation. Variety reported that Netflix has renewed its NFL deal through 2030 and is in advanced discussions for additional live sports rights.

Geographically, Asia Pacific was the strongest growth region in the quarter, adding 3.1 million subscribers, followed by Latin America with 2.4 million and Europe, Middle East and Africa with 2.2 million. North America added 1.6 million, consistent with the company’s mature market trajectory. Netflix said its password sharing crackdown, now fully implemented globally, continues to convert shared accounts into paid memberships at a rate that management described as ‘above our initial modeling assumptions.’ The company said it is no longer separately discussing the password sharing initiative as a discrete growth driver because its effects are now fully embedded in the baseline subscriber trends.

The content slate for Q2 2026 includes several anticipated releases that Netflix highlighted as likely engagement and acquisition drivers, including the fourth season of Squid Game, a new limited series from the creators of Succession, and the debut of a scripted series based on a major video game franchise in a licensing deal the company announced in late 2025. Netflix said it expects Q2 subscriber net adds to be ‘in line with or above’ Q1, and said it will stop reporting subscriber numbers as a quarterly headline metric beginning in 2027 as the company shifts its investor communication focus to revenue and operating income.