Netflix execs mum on M&A talk during earnings call
Netflix execs mum on M&A talk during earnings call
The streamer has shared its second quarter earnings report, but company executives had few updates regarding merger chatter.
Netflix is opting for a bit less transparency. That was one of the key takeaways from the streamer’s second-quarter earnings report, which is now available to the public. The streamer essentially met Wall Street forecasts in key financial metrics during the quarter, but during the traditional conference call with investors and analysts announced that it would offer less frequent information on platform engagement moving forward.
Key Details:
- Close enough: Netflix’s financials were more or less in line with Wall Street expectations.
- No updates: Neither Netflix co-CEO would confirm nor deny the company was seeking new M&A opportunities.
- Just one: The streamer will only release a report of how much engagement its shows are receiving once per year going forward.
Wall Street expected Netflix to end the second quarter of 2026 with earnings per share of $0.79 and revenue of $12.59 billion. Netflix more or less hit those targets, reporting revenue of $12.56 billion and an EPS of $0.80. The revenue figure represents a 13% year-over-year increase.
Company co-CEOs Greg Peters and Ted Sarandos spoke during the conference call to discuss the earnings report and addressed the ongoing merger and acquisition chatter around the streamer. Both essentially issued non-denial denials when asked about reports that they were considering a bundle with Peacock, falling back on the “builders, not buyers” line Netflix has used as a default position in the past.
It’s the same position Sarandos and Peters took up last fall in relation to Warner Bros. Discovery. But soon after, the company took a huge swing to try to acquire WBD’s streaming and studio assets, only to lose out to Paramount Skydance in the end. So, while Peters and Sarandos clearly believe there’s a high bar for each M&A opportunity to clear, the “builders, not buyers” line doesn’t necessarily mean they’re not engaged in M&A discussions.
More live programming is on the way for Netflix, as Sarandos noted the company is “really pleased” with the return on investment it’s seeing. Events from the first half of 2026, like “BTS: The Comeback Live” and “The Roast of Kevin Hart,” did well for Netflix, and Sarandos said that gives the streamer the confidence to try live programming with less global appeal.
“We’re continuing to lean into live events because they have a big, outsized positive on the business,” the CEO explained. “We’re going to continue to build out that global live event calendar and expand it to include some regional live events as well.”
Netflix has also decided it will only post updates regarding engagement with its catalog once per year. In 2023, the streamer began releasing its What We Watched report, a comprehensive list of its catalog and how many views each title received in the preceding six months. Until now, Netflix has released two What We Watched reports each year, but the streamer has decided that it will only give one such report annually beginning in 2027.
Netflix
Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”