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Netflix (NFLX<\/a>) is expected to report first quarter results<\/a> after the bell on Thursday after it lost the battle for the acquisition of Warner Bros. Discovery (WBD<\/a>) to Paramount Skydance (PSKY<\/a>) and raised its subscription prices.<\/p>\n The streaming giant is expected to report revenue of $12.17 billion, per Bloomberg consensus data. In the first quarter of last year, the company reported revenue of $10.54 billion.<\/p>\n Adjusted earnings per share are expected to come in at $0.76. In the same quarter a year ago, earnings were $0.66. The company issued a 10-for-1 stock split<\/a> in mid-November.<\/p>\n Read more: <\/em>Live coverage of corporate earnings<\/em><\/a><\/p>\n This is the first report since the company left the negotiating table following a contentious bidding contest to acquire Warner Bros. Discovery. Paramount SkyDance won the bid and agreed to pay for the breakup.<\/p>\n “Netflix has an incremental $2.8B to spend on content and ad stack improvements this year from its WB deal break-up fee, which we expect to extend its competitive lead,” Wedbush analyst Alicia Reese wrote in a note to clients. Warner Bros. shareholders will vote next week on the $110 billion offer. <\/a><\/p>\n As investors grew wary of the potential merger and the debt associated with the transaction<\/a>, there was a sigh of relief when it fell through, sending shares higher.<\/p>\n “We see a cleaner Netflix story post-WBD merger break, as investors refocus around core and near-term fundamentals and seek evidence that Netflix can scale a massive $10B+ advertising business over the long term,” BMO Research Brian J. Pitz wrote in a note.<\/p>\n This is also the first earnings report since Netflix raised its subscription prices for the second time in just over a year, which Pitz believes will “contribute roughly $1.5B in incremental revenue in 2026 estimates, providing 3.3% growth from pricing alone.”<\/p>\n Netflix increased its ad-supported Standard plan by $1 to $8.99 per month and the Standard (ad-free) and Premium tiers by $2 to $19.99 and $26.99 per month, respectively.<\/p>\n The ability to do so is a sign of strength, Bank of America analyst Jessica Reif Ehrlich wrote in a note to clients.<\/p>\n “Given the overarching concerns regarding engagement over the last 12-18 months, we view these increases as a validator of Netflix’s confidence in their underlying strength and durability.”<\/p>\n The Street expects Netflix to surpass 331 million paid subscribers worldwide in the first quarter.<\/p>\n \u2014<\/p>\n Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @<\/em>BrookeDiPalma<\/em><\/a> or email her at bdipalma@yahoofinance.com.<\/em><\/p>\n<\/p><\/div>\n