Investing.com-- Netflix Inc (NASDAQ: NFLX) fell in afterhours trading Tuesday after the streaming giant delivered soft guidance that fell short of Wall Street expectations for early 2026 and flagged a deceleration in growth despite a record 325 million paid subscribers and surging ad sales.

Netflix Inc (NASDAQ: NFLX) fell more than 4% in recent afterhours trading following the results.

For the three months ended Dec. 31, Netflix announced earnings per share of $0.56 per diluted share on revenue of $12.05 billion, just beating analyst estimates of $0.55 on revenue of $11.97 billion.

The company said it ended the year with 325 million global paid subscribers, with advertising revenue up more than 2.5 times from 2024 to over $1.5 billion.

Looking ahead, the streaming giant expects EPS of $0.76 on revenue of $12.16 billion, missing analyst estimates of $0.81 and $12.19 billion, respectively. For full-year 2026, the company guided revenue between $50.7 billion and $51.7 billion, just above estimates of $51.03 billion. That forecast represents growth of just 12%-14% year over year, or 11%-13% F/X neutral growth, slower than the 16% pace seen in 2025.

The soft guidance comes as the company pointed to a drop in hours spent on non‑branded, licensed titles, reflecting a lower volume of second‑run content after an elevated bout of licensing in 2023–2024 tied to the 148‑day Writers Guild of America (WGA) strike, which temporarily shut down new production.