Netflix Outperforms Disney with $5.09B FCF and Aggressive Buybacks

Latest commentary on July 4 underscores Netflix's capital-light model versus Disney's heavier spending. Netflix posted Q1 2026 revenue of $12.25 billion and $5.09 billion in free cash flow on just $196.1 million capex, raising 2026 FCF guidance to $12.5 billion while buying back $1.3 billion in shares. Disney reported $25.17 billion revenue and beat EPS estimates but saw net income drop 24.73% amid $1.97 billion capex. The analysis positions Netflix as the streaming winner with a 31.5% operating margin target versus Disney's 10.6% SVOD margin, despite NFLX shares falling 21.31% year to date.