Netflix (NASDAQ:NFLX) Announces Quarterly Earnings Results

Netflix (NASDAQ:NFLX) posted its quarterly earnings data on Tuesday. The Internet television network reported $0.56 EPS for the quarter, topping the consensus estimate of $0.55 by $0.01, Zacks reports. Netflix had a net margin of 24.30% and a return on equity of 43.96%. The company had revenue of $12.05 billion during the quarter, compared to analyst estimates of $11.97 billion. During the same period in the previous year, the firm earned $0.43 earnings per share. Netflix’s quarterly revenue was up 17.6% compared to the same quarter last year. Netflix updated its Q1 2026 guidance to 0.760-0.760 EPS.

Here are the key takeaways from Netflix’s conference call:

• Netflix reiterated strong organic growth with 2026 guidance of $51 billion revenue (≈14% y/y) and expects ad revenue to roughly double again to about $3 billion, citing continued member growth and pricing as key drivers.
• The company is targeting a 31.5% operating margin for 2026 (≈ +2 points y/y), saying margin expansion is sustainable even as it increases investment in content, ads, live events, games and product, with ~0.5 points of drag from expected M&A costs.
• Netflix is pursuing the Warner Bros. deal as a strategic accelerant — emphasizing HBO, a theatrical distribution business with a 45‑day window, and a pro forma mix where ~85% of revenues align with Netflix’s core — and says regulatory filings are underway.
• Management highlighted improving engagement quality (an all‑time high quality metric), lower churn, record customer satisfaction, and expansion into live events, podcasts, vertical video and cloud TV gaming as levers to boost acquisition and retention.

Netflix Stock Down 2.2%

Shares of NASDAQ:NFLX opened at $85.36 on Thursday. The business’s 50 day moving average is $97.34 and its 200 day moving average is $111.91. The stock has a market cap of $361.70 billion, a P/E ratio of 33.78 and a beta of 1.71. Netflix has a 52-week low of $81.93 and a 52-week high of $134.12. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.56.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 results slightly beat expectations: Netflix reported revenue of ~$12.05B and EPS just above estimates, and paid subscribers topped ~325M — evidence the core streaming business is still growing. Netflix beats revenue estimates as subscribers reach 325 million
• Positive Sentiment: Advertising momentum and hit content helped results: Management said ads generated meaningful revenue (~$1.5B in 2025) and content like the ‘Stranger Things’ finale boosted the quarter. Helped by ‘Stranger Things’ finale, Netflix lands strong fourth quarter
• Neutral Sentiment: Netflix amended its WBD offer to an all‑cash structure — this can speed a shareholder vote and removes stock‑swap uncertainty, but concentrates the cash burden on Netflix. Netflix submits amended all-cash offer for Warner Bros
• Neutral Sentiment: Regulatory and competitive process is now more visible: EU regulators are expected to review rival Netflix and Paramount bids in parallel — a review process that could lengthen or complicate the deal timetable. EU to weigh Netflix, Paramount bids for Warner Bros at the same time
• Negative Sentiment: Near-term guidance disappointed: Q1 EPS guidance came in below some Street forecasts and management signaled more investment, which turned a modest beat into a sell catalyst. Netflix Q4 earnings top estimates as subscribers top 325M, guidance disappoints
• Negative Sentiment: Buybacks paused and financing risks: Netflix said it will pause share repurchases to conserve cash for the WBD transaction and has lined up additional debt — both moves reduce near-term shareholder returns and raise capital structure risk. Netflix Locks In $8.2B in New Debt for Warner Buyout
• Negative Sentiment: Higher content spend and margin pressure: Netflix plans to increase program spending (~+10% in 2026), which will compress near‑term margins even if intended to boost long‑term growth. Netflix to boost program spending in 2026, crimping profit
• Negative Sentiment: Analyst cuts, insider selling and investor skepticism: Several firms trimmed targets after the call and recent insider sales were disclosed — all of which amplify downside pressure while the WBD outcome remains uncertain. SEC Form 4: Insider sale disclosure

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. Argus set a $141.00 price target on shares of Netflix in a research note on Thursday, October 23rd. BMO Capital Markets dropped their target price on Netflix from $143.00 to $135.00 and set an “outperform” rating for the company in a research report on Wednesday. HSBC cut their target price on Netflix from $107.00 to $106.00 and set a “buy” rating on the stock in a research note on Wednesday. Redburn Partners set a $120.00 price target on Netflix in a research note on Wednesday. Finally, The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $100.00 price objective (down previously from $112.00) on shares of Netflix in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Netflix currently has a consensus rating of “Moderate Buy” and an average price target of $120.72.

Insiders Place Their Bets

In related news, CEO Gregory K. Peters sold 20,270 shares of the company’s stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $109.57, for a total value of $2,220,943.36. Following the completion of the sale, the chief executive officer directly owned 127,810 shares of the company’s stock, valued at $14,003,886.08. This represents a 13.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider David A. Hyman sold 23,439 shares of the stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $88.11, for a total transaction of $2,065,210.29. Following the transaction, the insider owned 316,100 shares in the company, valued at approximately $27,851,571. The trade was a 6.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,653,599 shares of company stock worth $173,141,263. 1.37% of the stock is owned by company insiders.

Institutional Investors Weigh In On Netflix

Several hedge funds have recently modified their holdings of the business. Sivia Capital Partners LLC lifted its position in Netflix by 21.2% during the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after acquiring an additional 246 shares during the last quarter. Schnieders Capital Management LLC. increased its position in shares of Netflix by 12.1% during the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock worth $2,832,000 after purchasing an additional 228 shares in the last quarter. Brighton Jones LLC lifted its holdings in shares of Netflix by 5.0% during the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after purchasing an additional 257 shares during the last quarter. Palisade Capital Management LP purchased a new stake in shares of Netflix during the 2nd quarter valued at $235,000. Finally, FFT Wealth Management LLC acquired a new stake in shares of Netflix in the 2nd quarter worth $234,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

About Netflix

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.