<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Netflix will report its first-quarter 2026 results on April 16. </li><li>The streaming giant plans to spend $20 billion on content this year. </li><li>Investors will want to pay particular attention to ad revenue, margins, and free cash flow in the upcoming report. </li><li>10 stocks we like better than Netflix ›</li></ul>When Netflix (NASDAQ: NFLX) reports first-quarter 2026 earnings on April 16, Warner Bros Discovery will no longer be a distraction. That means investors will pay more attention to factors like ad revenue, margins, and free cash flow.Depending on what happens with those, we'll likely see the stock price find its next short-term direction.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MTAxNi9zdHJlYW1pbmctdHYtbmV0ZmxpeC1odWx1LWRpc25leS1wbHVzLWVudGVydGFpbm1lbnQtMTIwMHg4MDAtNWIyZGY3OS5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MTAxNi9zdHJlYW1pbmctdHYtbmV0ZmxpeC1odWx1LWRpc25leS1wbHVzLWVudGVydGFpbm1lbnQtMTIwMHg4MDAtNWIyZGY3OS5qcGcmdz03MDA"/>Image source: Getty Images. <h2>No. 1: Ad-based revenue</h2>In 2025, ad revenue of about $1.5 billion accounted for roughly 3% of Netflix's total revenue. At an expected $3 billion in 2026, ad revenue should make up close to 6% of total revenue.As long as unexpected issues don't pop up and the rest of the earnings report is strong, ad revenue climbing as fast or faster than expected could be bullish for Netflix shares. Outperformance on that front would show that the streaming giant has another level to pull to boost revenue besides subscription price increases, and that ad sales can be a strategic growth engine.If ad revenue looks weak and is paired with other underwhelming metrics, that could send the stock price lower after the report.<h2>No. 2: Margins</h2>Netflix says it plans to spend $20 billion on content this year, which can be valuable for the company in the long term, as its large and growing catalog of unique content helps it not only attract new subscribers but also retain them.In the short term, though, investors may worry about how outlays that large affect its profitability, as management's operating margin guidance of 31.5% for 2026 was already below analysts' expectations.If Q1 2026 offers an early preview that margins could be even lower than previously forecast, and if management revises its forecasts downward, that would be concerning for shareholders.If the opposite happens and margins look as expected or better, and are part of an overall strong earnings report, that could help send the stock price higher.<h2>No. 3: Free cash flow</h2>Robust free cash flow will remain important, as it can help the company fund its extensive content production plans. And some of that cash will also be used for shareholder-friendly moves, such as stock buybacks.After Netflix walked away from its bid to acquire most of Warner Bros Discovery, it announced on Feb. 26 that it would resume its stock buyback program.Free cash flow is forecast to be roughly $11 billion in 2026. Just as with the ad revenue and margins, shareholders will want to pay close attention to management's comments on free cash flow.<h2>Looking beyond Q1</h2>Knowing what to watch for in the upcoming quarterly report can help with setting expectations, but what's more important is establishing a long-term investing framework. That can help you as an individual investor to limit your knee-jerk reactions to any single set of results.When building your Netflix investment thesis for the long term, I recommend considering the potential of its noncore growth opportunities in areas such as ad revenue, video podcasting, gaming, and its Netflix House themed entertainment venues, and how they could add to its powerful streaming business.<h2>Should you buy stock in Netflix right now?</h2> Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $494,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,094,668!* Now, it’s worth noting Stock Advisor’s total average return is 911% — a market-crushing outperformance compared to 186% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 20, 2026. Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

NFLW

Netflix is set to report its Q1 2026 earnings on April 16, with a focus on ad revenue, margins, and free cash flow. The company plans to spend $20 billion on content this year, which may impact profitability. Ad revenue is expected to rise to $3 billion, potentially boosting stock prices if strong. Investors will also monitor margins and free cash flow, projected at $11 billion, as these metrics will influence Netflix's financial outlook and stock performance. Analysts suggest considering long-term growth opportunities beyond the upcoming report.

- Netflix is set to report its first-quarter 2026 results on April 16, with a focus on ad revenue, margins, and free cash flow.  
- The company plans to spend $20 billion on content in 2026, and strong performance in ad revenue and margins could influence stock prices positively.  
- Investors also need to consider Netflix's long-term growth opportunities beyond its core streaming business, as the overall earnings report will shape future investor sentiment.

Netflix Q1 2026 Preview: The 3 Metrics That Could Move the Stock