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Netflix beats earnings forecasts riding on global user additions
MUMBAI: Exceeding user addition forecasts, Netflix’s first quarter (Q1) earnings were in line with expectations while revenue bettered estimates.
Revenue grew by 43 per cent year over year in Q1 due to a 25 per cent increase in average paid streaming memberships and a 14 per cent rise in the average selling price (ASP). Operating margin of 12 per cent rose 232 bps year over year. This was higher than the company’s quarter guidance, due primarily to the timing of content spend.
Global net user adds totalled a new Q1 record of 7.41 million, up 50 per cent year on year and higher than the forecast of 6.35 million.
“The variance relative to our guidance was driven by continued strong acquisition trends across the globe which we attribute to the growing breadth of our content and the worldwide adoption of internet entertainment,” Netflix said in its statement.
In the US, it added 1.96 million memberships (compared with forecast of 1.45 million). Outside of the US, membership grew by 5.46 million (forecast of 4.90 million). Our international segment now accounts for 50 per cent of revenue and 55 per cent of memberships
Netflix has relied on international growth and heavy investments in original content to drive subscriptions — and Monday’s results provided an update on their effectiveness.
Netflix’s addition of 7.41 million international subscribers set a new record, marking growth of 50 percent from a year ago.
Chief content officer Ted Sarandos said Netflix has shot original content in 17 countries as it focuses more on local programming, and that many of Netflix’s foreign-language shows would be considered “big hits” on American cable channels, thanks to artful subtitling. CEO Reed Hastings added that Netflix has also seen success on its international mobile app offerings. But Hastings also said that the company hadn’t changed its view on expanding in China, and will continue to license content.
The company also said it expects to have $7.5 billion to $8 billion of content expenses this year, in line with previous estimates. Netflix had said it expects to grow to 60 million to 90 million members in the U.S. over time and that it would spend $8 billion on content and $2 billion on marketing this year.
The company highlighted Spanish-language hit La Casa de Papel, unscripted series Queer Eye and franchises such as Marvel’s Jessica Jones, Grace and Frankie, Santa Clarita Diet and A Series of Unfortunate Events. Netflix also credited new talent, such as Shonda Rhimes and Jenji Kohan, for their “proven track record of success” and for allowing Netflix to cut back “reliance on third-party studios.”
“We’re investing in more marketing of new original titles to create more density of viewing and conversation around each title,” the company said.
The marketing spending comes after Netflix was barred from competing at the Cannes film festival due to a rule change — a setback the company called unfortunate.
One thing that’s not on the spending slate, Sarandos said, is news programming.
“Our move into news has been misreported over and over again. We’re not looking to expand into news beyond the work that we’re doing in long-form and short-form documentary,” Sarandos said. “Topical interview shows, absolutely, but keep in mind, those are entertainment.”
Netflix faces increasing competition from Amazon and Disney, which have their own offerings, as well as traditional media companies and technology companies such as Apple. Hastings said the company still has a long way to go to compete with the likes of YouTube and noted that Netflix’s ability to raise prices depends on providing more value than competitors.
At the same time, Netflix is expanding into cable bundles and recently announced a new offering with Comcast, in addition to bundles with Sky, T-Mobile and Altice.
Netflix said on Monday the bundles allow the company to upsell existing subscribers. Executives said on a conference call that the “new wave” of operator partnerships was a consistent shift across all geographic markets.
“We remain primarily a direct-to-consumer business, but we see our bundling initiative as an attractive supplemental channel,” the company said.
In February this year, Hastings, at a business summit in India, said that Netflix saw a potential of adding 100 million customers in India. “It definitely helps to have confidence on the growth of the internet. Even we couldn’t predict the last two years of Indian internet growth,” he had said.
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Bluestone FY26 revenue rises to Rs 2,436 crore, turns profitable
Q4 profit at Rs 31 crore, full-year profit at Rs 13 crore vs loss last year.
MUMBAI: From sparkle to numbers, Bluestone seems to be polishing more than just jewellery this year. Bluestone Jewellery and Lifestyle Limited reported a sharp turnaround in FY26, with revenue from operations rising to Rs 2,436 crore (Rs 24,364 million), up from Rs 1,770 crore (Rs 17,700 million) in FY25. The company posted a full-year profit of Rs 13 crore (Rs 131.79 million), a significant recovery from a loss of Rs 222 crore (Rs 2,218 million) a year ago.
Total income for the year stood at Rs 2,486 crore (Rs 24,860 million), compared to Rs 1,830 crore (Rs 18,300 million) in the previous year, reflecting both topline growth and improved operational momentum.
The March quarter, however, told a more nuanced story. Revenue from operations came in at Rs 681 crore (Rs 6,814 million), down from Rs 748 crore (Rs 7,486 million) in the year-ago period, though higher than Rs 461 crore (Rs 4,613 million) in the preceding December quarter. Net profit for Q4 stood at Rs 31 crore (Rs 311.81 million), compared to Rs 68 crore (Rs 688 million) a year earlier, but a clear reversal from a loss of Rs 51 crore (Rs 512 million) in Q3.
Margins were shaped by higher input costs, with raw material consumption rising to Rs 2,204 crore (Rs 22,043 million) for the full year, alongside employee benefit expenses of Rs 282 crore (Rs 2,824 million) and finance costs of Rs 210 crore (Rs 2,104 million). Other expenses came in at Rs 371 crore (Rs 3,715 million), slightly lower than Rs 393 crore (Rs 3,938 million) in FY25.
On the balance sheet front, total assets expanded to Rs 4,961 crore (Rs 49,610 million) as of March 31, 2026, from Rs 3,532 crore (Rs 35,322 million) a year earlier, driven largely by a surge in inventories to Rs 2,672 crore (Rs 26,718 million). Equity also strengthened to Rs 1,803 crore (Rs 18,030 million), nearly doubling from Rs 911 crore (Rs 9,107 million).
Cash flows reflected the cost of growth. Net cash used in operating activities stood at Rs 199 crore (Rs 1,990 million), while investing activities saw an outflow of Rs 239 crore (Rs 2,392 million). Financing activities, however, generated Rs 497 crore (Rs 4,971 million), helping the company end the year with cash and cash equivalents of Rs 108 crore (Rs 1,075 million), up from Rs 49 crore (Rs 487 million).
Earnings per share for FY26 came in at Rs 1.10, a sharp improvement from a negative Rs 79.74 in FY25, underlining the shift from losses to profitability.
With revenue scaling up, costs still glittering on the higher side, and profitability finally back in the black, BlueStone’s FY26 performance suggests a business mid-transition less about shine alone, and more about sustaining it.
