Netflix Q1 2026 Earnings Results Stock Drops 7%: Beat on Revenue, Weak Guidance Tanks Shares — And Reed Hastings Exits After 29 Years

# Netflix Q1 2026 Earnings Results Stock Drops 7%: Beat on Revenue, Weak Guidance Tanks Shares — And Reed Hastings Exits After 29 Years

> **Quick answer:** Netflix beat Q1 2026 expectations handily — revenue hit $12.25 billion (up 16%), and EPS of $1.23 nearly doubled year-over-year. But shares plummeted 7-10% after-hours because Q2 guidance came in below analyst consensus. Simultaneously, co-founder Reed Hastings announced he will leave the Netflix board in June 2026, ending a 29-year run at the company he built into the world's dominant streaming platform. Whether you're rushing to buy the dip, panicking toward the sell button, or calmly holding, your reaction to this news reveals your investor personality type.

Netflix posted one of its strongest quarterly revenue prints ever on April 16, 2026 — then watched its stock crater in extended trading. The Netflix Q1 2026 earnings results stock drop of roughly 7-10% after-hours is a textbook example of Wall Street's forward-looking logic: markets don't reward the past, they price the future. Throw in the surprise departure of Reed Hastings from the board, and you have a news cycle that is simultaneously about strong fundamentals, management transition, and investor psychology — all in one earnings call.

## Netflix Q1 2026: The Numbers That Beat Wall Street

Netflix reported Q1 2026 revenue of **$12.25 billion**, up 16.2% from the same period a year ago and ahead of the analyst consensus of approximately $12.18 billion. Diluted earnings per share came in at **$1.23** — nearly double year-over-year and a massive beat above the Wall Street estimate of roughly $0.76-$0.79 per share.

Operating margin held just above 32% for the quarter, in line with full-year guidance. The company maintained its full-year 2026 revenue forecast of $50.7 billion to $51.7 billion and a 31.5% operating margin target — no change to the annual outlook.