Netflix adds TikTok-style feed as Q1 profit jumps 83%

Netflix is launching a TikTok-like vertical video feed within its apps this month. The company has been testing this vertical video feed since last year. The short video feature could aid users with discovering video podcasts, along with the current slate of shows and movies. Alongside this product launch, Netflix plans to use artificial intelligence broadly for content creation and recommendations.

The product expansion comes alongside strong financial results for the first quarter of 2026. Netflix reported the following financial metrics:

• Revenue of $12.25 billion, up 16.2% year-over-year.
• Profit jumped 83% to $5.28 billion.
• A paying subscriber base of 325 million users at the end of 2025.

To support its AI strategy, Netflix acquired InterPositive, an AI creation company owned by Ben Affleck, last month. Co-CEO Ted Sarandos stated that the acquisition accelerates the company’s Generative Artificial Intelligence (GenAI) capability. “With our acquisition of InterPositive, we think it accelerates our GenAI capability because it is proprietary technology created specifically for filmmakers and filmmaking, different from other GenAI video applications. While our ownership of InterPositive is very new, we have generated interest with creators who have spent time with the tools, and we are seeing momentum build around adoption,” Sarandos said.

Sarandos also noted that the company expects GenAI to make content better through better tools and processes. He stated that while it takes a great artist to make great art, and AI won’t change that, the technology will give those artists better tools to bring those visions to life. Meanwhile, co-CEO Gregory Peters noted that while Netflix has been in personalization and recommendation for two decades, there is still tremendous room to make it better by leveraging newer technologies.

Additionally, Netflix expects to generate ad revenue of $3 billion this year. The company plans to use AI broadly for content creation and recommendations, including improving its ad suite to allow for new formats and customization. These strategic moves coincide with leadership changes and pricing adjustments. Co-founder and chair Reed Hastings is leaving the company’s board this summer. Additionally, Netflix hiked subscription prices in the U.S. late last month.

Why it matters

Netflix is evolving its product surface with a TikTok-like vertical feed and deepening its investment in AI tools for content creation, while simultaneously reporting strong Q1 2026 financial growth.