Stock Movers Closing Bell: United Airlines and Netflix Report
Jan 20, 2026
United Airlines reports a strong fourth quarter, beating expectations with earnings of $3.10 per share, fueled by rising demand from premium and international travelers. Meanwhile, Netflix matches or exceeds revenue estimates but warns of challenges ahead, including a cautious forecast due to increased program spending and a high-stakes deal with Warner Bros. They plan to boost their content budget by 10% while pausing buybacks to fund acquisitions. Investor reactions hint at concerns about margins and free cash flow.
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Premium Travel Is Driving United's Outlook
- United beat Q4 estimates with $3.10 EPS and signals resilient premium travel demand.
- Management expects 2026 EPS of $12–$14 driven by premium and international travelers.
Strong Q4 But Cautious 2026 Guidance
- Netflix beat on Q4 revenue and free cash flow but issued a cautious 2026 revenue outlook.
- Investors reacted poorly to higher program spend and costs tied to the Warner Bros. Discovery deal.
Spending Push And Cash Tradeoffs
- Netflix will raise programming spend about 10% in 2026 and pause buybacks to fund the Warner deal.
- That shift increases cash needs and likely adds substantial debt if the all-cash bid goes through.