• Netflix reported fourth-quarter results that were slightly above Wall Street's estimates.
• Netflix's stock dipped in after-hours trading after guidance for the first quarter of 2026 fell short.
• Netflix generated record viewership in December and is moving into areas like podcasts.

Netflix ended 2025 with a bang, but it may not have been enough to calm shareholders who've been antsy about its $83 billion Warner Bros. deal.

The streaming giant came in slightly ahead of estimates for the fourth quarter, reporting record revenue of $12 billion and earnings per share of $0.56. Wall Street had expected Netflix to report just under $12 billion in revenue and $0.55 per share in profits. Last quarter, Netflix's earnings came in well below estimates after a costly dispute with Brazilian tax authorities.

However, Netflix's first-quarter guidance of $0.76 per share was below analysts' estimates for $0.81 per share. The company also projected $12.15 billion in revenue and an operating margin of 32.1%.

The stock was down over 4% in after-hours trading.

Heading into Q4 earnings, Netflix shares had fallen about 30% in the last three months. Shareholders have seemed concerned by its decision to buy Warner Bros. Discovery's studio and HBO assets.

Netflix's leadership team has sounded confident that regulators will approve its deal, but rival suitor Paramount Skydance hasn't given up in its quest to buy all of WBD. On Tuesday, Netflix sweetened its bid by making its offer all-cash.

For the first time in a year, Netflix shared an updated subscriber count. The company said it has more than 325 million subscribers, up from 300 million at the end of 2024.

Besides that growth, several signs suggest Netflix's business is healthy.

Netflix's cancellation rate is easily the lowest among paid streaming services in the US, at less than 2%, according to subscription data provider Antenna. No other streamer has a churn rate below 4%.

And Netflix appears to be as popular as ever, thanks to hits like "Stranger Things," as its viewership share on US TVs surged to a record 9% in December, according to Nielsen, up from 8.3% in November. Its next closest paid competitor is Disney, whose streaming services have been stuck below 5% share for years.

Netflix is still chasing YouTube in the battle for eyeballs, however. YouTube commands nearly 13% of viewership time in the US, according to Nielsen.

As YouTube takes on Netflix in the living room, Netflix is becoming more like YouTube by adding video podcasts. Netflix is also spending big on sports, including NFL games on Christmas Day.

If Netflix buys Warner Bros., it will add an avalanche of movies and TV shows that will further boost its engagement, including the "Harry Potter" franchise and HBO's "Game of Thrones."