Netflix Raises Prices Across US, Targeting Strong Earnings Growth in 2026

Netflix has increased subscription prices across all US tiers, citing strong pricing power. The company aims to expand operating margins to 31.5% in 2026, driven by 17.6% quarterly revenue growth and 29.5% operating margins in Q4 2025.

NFLX has raised subscription prices across all US tiers, with the ad-supported plan rising to $8.99 (+12.5%), Standard to $19.99 (+11.1%), and Premium to $26.99 (+8.0%) . This marks the company's second price increase in less than two years, reflecting management's confidence in its pricing power with over 325 million global subscribers.

The price hikes come on the heels of strong Q4 2025 results, in which Netflix posted $12.16 billion in revenue (17.6% year-over-year growth) and 29.5% operating margins. Ad revenue for full-year 2025 reached over $1.5 billion, up 2.5x from 2024, adding a growing high-margin revenue stream. Analysts at Citi reinstated a Buy rating with a $115 price target, estimating the price increases could unlock approximately $1.7 billion in incremental annual revenue with minimal subscriber churn.

Netflix has set an ambitious 2026 operating margin target of 31.5%, up from 29.5% in 2025, with content spending rising to $20 billion. The consensus among 35 Buy/Strong Buy ratings versus 11 Hold/Sell reflects broad analyst confidence in the company's ability to balance pricing discipline with subscriber retention in an increasingly competitive streaming landscape that includes Disney+, Max, and Amazon Prime Video.