AMC Networks raises outlook after $500M Netflix Walking Dead deal

AMC Networks raised its full-year revenue forecast to as much as $2.5 billion after signing a $500 million streaming deal with Netflix for The Walking Dead.

"This deal creates a global destination for this universe — all shows, all episodes — making the franchise more accessible than ever to fans around the world," Kristin Dolan, CEO of AMC Global Media, said.

The company now expects 2026 revenue of $2.4 billion to $2.5 billion, up from its prior range. Second-quarter streaming revenue rose 6% year over year to $180 million, while U.S. advertising revenue fell 11% to $109 million, a decline the company attributed partly to a one-time system integration issue. Excluding that factor, ad revenue declined in the mid-single-digit percent area.

The Netflix agreement covers 371 episodes across the original The Walking Dead series and six spin-offs. AMC expects to recognize $200 million to $225 million in revenue from the deal in each of 2026 and 2027, based on the present value of future payments estimated at about $445 million.

Under the deal's payment terms, AMC will receive approximately $25 million in cash this year and about $100 million annually from 2027 through 2030, with the remainder due in 2031. The co-exclusive arrangement will bring the original series to AMC+ for the first time in early 2027, while Netflix gains streaming rights in new territories including the U.K., Italy, Australia and New Zealand.

AMC reported $1.3 million in restructuring charges for the quarter, including $800,000 tied to its international segment and $500,000 in severance costs. The company's streaming portfolio includes AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, HIDIVE and All Reality. Its linear networks span AMC, BBC AMERICA, IFC, SundanceTV and We TV.

The company did not disclose a streaming subscriber count for the second quarter, having said in May it would no longer report the metric quarterly. In the first quarter, streaming subscribers totaled 10.1 million, down 1% year over year.

The guidance raise signals that management expects the Netflix licensing deal to provide a meaningful multi-year revenue tailwind. Investors will watch the next quarterly report for updates on ad revenue trends and the timing of the Walking Dead content rollout on AMC+.

This article is for informational purposes only and does not constitute investment advice.