Netflix will report its fourth-quarter earnings after the bell on Tuesday, with questions surrounding its pending acquisition of Warner Bros. Discovery’s assets top of mind for investors.

In recent years Netflix’s quarterly reports have been mostly steady — with the exception of a miss on earnings estimates last quarter, related to a unique one-time charge. Netflix stopped reporting subscriber numbers in early 2025 — when it said it had more than 300 million global subscribers — and has instead focused on its strategy shift toward growing its advertising-supported business.

For several quarters, Wall Street has been particularly focused on that ad-supported business, any effects of recent price increases on the subscriber base, and Netflix’s content pipeline.

Here’s how the company is expected to perform for in its fourth quarter according to analysts polled by LSEG:

• Earnings per share: 55 cents, according to LSEG
• Revenue: $11.97 billion, according to LSEG

This quarter’s financials, however, are likely to be overshadowed by Netflix’s announcement in December that it had agreed to acquire Warner Bros. Discovery’s streaming and film studio assets for $27.75 per WBD share, or an equity value of $72 billion.

The proposed acquisition came as a shock to the market as the streaming giant has long stayed away from industry consolidation and mega deals.

“Q4 was a big flex for Netflix, marked by bolder swings to drive growth beyond its core,” said Mike Proulx, vice president and research director at Forrester. “That’s notable for a company that touts itself as more builders than buyers. Yet Netflix’s Q4 actions say otherwise.”

Since the announcement, Netflix’s stock has fallen in response. Since October, when Netflix was first rumored to be interested in the assets, the company’s stock dropped nearly 30%.

And the potential acquisition has not been without its bumps. Soon after announcing the deal with Netflix, Paramount Skydance launched a hostile effort to buy all of WBD.

As Paramount’s pressure to acquire WBD has ramped up, Netflix this week amended its offer to be all-cash. Meanwhile, there’s also been questions about whether Netflix’s acquisition of WBD would receive necessary regulatory approval.

“2026 will be a defining year for Netflix. If the Warner Bros. deal actually happens, it will reposition a newly beefed‑up Netflix, not just within the streaming market, but across the entertainment industry at large. But that fight is only the beginning. Expect lots more drama as the bidding war plays out this year,” Proulx said.

This story is developing. Please check back for updates.