Netflix projects its 2026 advertising revenue will nearly double the $1.5 billion it generated in 2025. This growth is supported by an expanded Ads Suite featuring new audience targeting through Amazon DSP and Yahoo DSP integrations and a proprietary Conversion API that outperformed industry benchmarks by more than 75% in early testing. These enhancements are designed to increase advertiser demand and the platform's appeal as a performance platform.
The revenue trajectory is tied to a projected first-quarter 2026 operating margin of 32.1%, a step up from the 31.7% margin achieved in the first quarter of 2025. The company also declined to raise its offer for Warner Bros. Discovery in February 2026, a decision that removed approximately $275 million in acquisition-related costs from 2026 operating plans.
Netflix guided full-year 2026 free cash flow of approximately $11 billion.