Quick overview

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Netflix’s board has approved a new $25 billion share buyback program, adding to a previously authorized $6.8 billion plan.

The company announced the move after reviewing its latest financial outlook, just days after its most recent earnings report sent the stock down more than 13%.
Netflix reported earnings per share of $1.23, well above the $0.76 consensus estimate. Revenue came in at $12.25 billion, beating expectations of $12.17 billion, while free cash flow reached $5.09 billion—nearly double forecasts. Despite the headline beats, the stock fell in after-hours trading, as some of the metrics most closely watched by investors came in below expectations.

Strategic moves and one-off effects

Earlier this year, Netflix withdrew from a bidding war with Paramount Global’s Skydance to acquire Warner Bros. Discovery, after deciding the deal was no longer “financially attractive.”
Following its withdrawal, Netflix received a $2.8 billion breakup fee, which was reflected in its quarterly results.

Details of the buyback

The newly approved $25 billion program significantly expands Netflix’s capital return strategy. Combined with the existing $6.8 billion authorization, it underscores the company’s confidence in its cash generation capacity.

The buyback does not specify the number of shares to be repurchased, and the company retains the flexibility to pause or modify the program at any time.
In recent weeks, Netflix also announced the departure of its co-CEO Reed Hastings, marking another key transition as the company reshapes its leadership and long-term strategy.