Netflix will become a vastly bigger and different company once its deal to acquire Warner Bros. Discovery’s studio and streaming businesses goes through.

Going into 2026, investors should monitor operating margin trends, cash flow generation, and commentary on content investment efficiency. Any sign that Netflix is losing discipline could signal pressure ahead. Netflix enters 2026 with an enormous opportunity and equally significant risk.

Netflix based on current metrics and historical multiples is an outstanding business at an outstanding price. See why NFLX stock is a Buy.

Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Roku, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends Live Nation Entertainment and TKO Group Holdings. The Motley Fool has a disclosure policy.

Revenue totaled $33.1 billion in the first nine months of 2025, up 15% year over year. Operating income increased 28% during that time. And free cash flow totaled $2.7 billion in the third quarter. Those profit figures demonstrate Netflix's cost advantage, which allows it to stand out versus competitors that don't have the same scale.

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