Netflix, Inc. (NFLX) is a California-based global digital entertainment company that delivers subscription-based streaming of movies, TV series, and original content directly to consumers. Valued at a market cap of $392.5 billion, it operates a fully direct-to-consumer model, generating revenue primarily from monthly subscriptions, with a growing contribution from its ad-supported tier.
The streaming giant is expected to announce its fiscal Q1 earnings for 2026 after the market closes on Wednesday, Apr. 16. Ahead of this event, analysts expect this media and entertainment company to report a profit of $0.76 per share, up 15.2% from $0.66 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion.
For the current fiscal year, ending in December, analysts expect NFLX to report a profit of $3.17 per share, up 25.3% from $2.53 per share in fiscal 2025. Furthermore, its EPS is expected to grow 21.8% year over year to $3.86 in fiscal 2027.
Shares of Netflix have gained 3% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 17% return and the State Street Communication Services Select Sector SPDR ETF’s (XLC) 15.8% uptick over the same time period.
On Feb. 27, Netflix shares jumped over 13%, leading Nasdaq 100 gainers, after the company withdrew from the bidding war to acquire Warner Bros. Discovery, Inc. (WBD). Investors reacted positively to the decision, as it signaled strong capital discipline and removed concerns about overpaying for a large, complex acquisition. By stepping away from the deal and securing a breakup fee, Netflix reinforced its focus on core streaming operations and profitability, driving the sharp rally in its stock.
Wall Street analysts are moderately optimistic about NFLX’s stock, with a "Moderate Buy" rating overall. Among 49 analysts covering the stock, 31 recommend "Strong Buy," five indicate "Moderate Buy,” and 13 suggest "Hold.” The mean price target for Netflix is $114.86, indicating a 19.5% potential upside from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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