Netflix Authorizes $25 Billion Stock Buyback Plan After Failed Warner Bros. Bid

NFLX authorized an additional $25 billion share repurchase program on April 22, 2026, supplementing a December 2024 authorization that still had $6.8 billion remaining. The move was announced alongside Q2 2026 revenue guidance of $12.574 billion, a fraction below the $12.63 billion analyst consensus, which had sent shares down roughly 9-10% in the days prior — making the buyback effectively a statement that management views the stock as undervalued.

The buyback follows Netflix's exit from a bid to acquire Warner Bros. Discovery's studio and streaming assets. WBD's board deemed a competing offer from Paramount Global (backed by Skydance at $110.9 billion) superior to Netflix's deal, and Netflix received a termination fee reported at $2.8 billion. Walking away redirects significant capital toward shareholder returns rather than the integration complexity of a transformational acquisition. NFLX enters this phase from a position of strength: more than 325 million paid memberships, $45.2 billion in 2025 revenue (up 16% YoY), and 2026 guidance calling for $50.7-51.7 billion.

Strategically, analysts expect NFLX to redeploy the WBD termination fee and buyback program while doubling down on its advertising tier (which surpassed $1.5 billion in 2025 ad revenue and is expected to double in 2026), live programming, and sports content. The pivot toward capital returns rather than M&A signals confidence in Netflix's organic cash generation — the company plans $20 billion in content spending in 2026 while still sustaining a buyback of this scale.