Netflix spent nearly $5 billion on stock buybacks in its most recent quarter, its largest quarterly repurchase activity on record, and management reloaded its buyback authorization to $27 billion. The company expects full-year revenue growth of 13% to 14% and an operating margin of 31.5%, representing more than 1,000 basis points of margin expansion over the past three years. Free cash flow is forecast to grow more than 30% to $12.5 billion, up from prior guidance of $11 billion. Ad revenue is projected to roughly double to $3 billion in 2026, still just 6% of total revenue but carrying higher incremental margins. Shares fell 8% after the second-quarter report and are down nearly 50% from last year's high, trading at less than 20 times forward earnings.
Netflix IncRecord $5B buyback and raised authorization to $27B, strong FCF and margin guidance.
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