Internet television network Netflix (NFLX) late Tuesday edged above Wall Street's estimates for the fourth quarter but missed views with its outlook for the current quarter. Netflix stock dropped in extended trades.

The Los Gatos, Calif.-based company earned 56 cents a share on sales of $12.05 billion in the December quarter. Analysts polled by FactSet had expected Netflix to earn 55 cents a share on sales of $11.97 billion. In the year-earlier period, the subscription video streaming service earned 43 cents a share on sales of $10.25 billion.

For the current quarter, Netflix forecast earnings of 76 cents a share on sales of $12.16 billion. However, analysts had been looking for Q1 earnings of 81 cents a share on sales of $12.19 billion. In the same quarter last year, Netflix earned 66 cents a share on sales of $10.54 billion.

For full-year 2026, Netflix guided to revenue of $50.7 billion to $51.7 billion, up 12% to 14% year over year. The midpoint of $51.2 billion topped the consensus estimate of $51.03 billion.

In 2025, Netflix's revenue increased 15.8% to $45.18 billion.

Netflix got a viewership lift in the fourth quarter from the final season of hit series "Stranger Things," animated movie musical "K-Pop Demon Hunters," two NFL football games and other popular content.

In a shareholder letter, Netflix said it crossed the milestone of 325 million subscribers worldwide in Q4.

In after-hours trading on the stock market today, Netflix stock fell 4.8% to 83.04. During the regular session Tuesday, Netflix stock sank 1.1% to close at 87.05.

Netflix Revises Warner Bros. Offer

Earlier Tuesday, Netflix announced that it had amended its $72 billion offer for the studio and streaming assets of Warner Bros. Discovery (WBD) to an all-cash deal. Netflix said the revised offer simplifies the transaction structure and provides greater certainty of value for WBD shareholders.

In a news release, Netflix said the new offer should accelerate the path to a shareholder vote. Meanwhile, Paramount Skydance (PSKY) continues to pursue a rival bid for Warner Bros. Discovery.

Netflix's acquisition of the Warner Bros. assets has been an overhang on Netflix stock since last fall when rumors first circulated that a bid was coming.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.