Netflix (NASDAQ:NFLX) Releases Earnings Results

Netflix (NASDAQ:NFLX) issued its quarterly earnings data on Thursday. The Internet television network reported $1.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.76 by $0.47, FiscalAI reports. The business had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The company’s revenue was up 16.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $6.61 earnings per share. Netflix updated its Q2 2026 guidance to 0.780-0.780 EPS.

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

• Maintained full‑year guidance for 2026 with revenue growth of 12%–14% and an operating margin target of 31.5%, explicitly including a plan to roughly double advertising to about $3 billion.
• Q1 engagement and membership momentum remains strong—view hours grew in line with H2 2025, the company’s primary member quality metric hit a new high, and paid members exceed 325 million with large upside given ~45% household penetration and only ~5% global TV view share.
• Netflix walked away from the Warner Bros. deal on economic grounds but says WB‑related costs were largely within prior M&A guidance, that the exercise strengthened its M&A capabilities, and that there is no material impact to 2026 operating margin guidance.
• The ad business is expanding—advertiser count topped ~4,000 (up ~70% YoY in 2025), programmatic is >50% of non‑live ads, and management reaffirmed the $3 billion ad revenue target despite Nielsen methodology changes.
• Live events and new formats are driving incremental engagement—the World Baseball Classic drew 31.4 million viewers in Japan and produced the largest single sign‑up day there, while Netflix is ramping sports, podcasts, and kids gaming (e.g., the new Playground app) to capture daytime/mobile reach.

Netflix Stock Up 0.1%

Shares of NASDAQ NFLX opened at $107.79 on Friday. Netflix has a 12-month low of $75.01 and a 12-month high of $134.12. The stock has a market cap of $455.11 billion, a PE ratio of 42.66, a P/E/G ratio of 1.58 and a beta of 1.67. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.51. The company has a 50-day moving average of $91.90 and a 200 day moving average of $98.56.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q1 results beat consensus — Netflix reported $12.25B in revenue and $1.23 GAAP EPS, beating street revenue and EPS expectations and showing margin expansion and strong cash flow. Q1 Results
• Positive Sentiment: Ad and pricing tailwinds cited — management and some analysts point to higher pricing and accelerating ad revenue as durable profit drivers, supporting continued buy ratings from several firms. Analyst Take
• Neutral Sentiment: Co‑founder Reed Hastings will not stand for re‑election to the board in June — Netflix says he’s pursuing philanthropy; the move removes a long‑time presence but management frames it as orderly. Hastings Exit
• Neutral Sentiment: Market context: risk appetite is mixed (futures up on geopolitical optimism) which may temper a broader market selloff but leaves company‑specific headlines to drive NFLX. Market Futures
• Negative Sentiment: Disappointing Q2/near‑term guidance — Netflix set Q2 EPS at $0.78 (below consensus ~$0.84) and issued conservative near‑term revenue guidance, triggering investor concern that growth and engagement may slow. Guidance Miss
• Negative Sentiment: Market skepticism over one‑time gains and sustainability — some investors see the big profit beat as partly driven by a Warner Bros. breakup fee and price increases, raising doubts about repeatable top‑line momentum and prompting profit‑taking. One‑time Gains Concern
• Negative Sentiment: Strategic risks flagged by analysts — commentary warns of engagement friction, dependence on large sports/content deals, and tougher competition for scripted franchises, which could pressure future growth and content ROI. Analyst Concerns

Wall Street Analysts Forecast Growth

NFLX has been the subject of several research analyst reports. Canaccord Genuity Group set a $125.00 price target on shares of Netflix and gave the stock a “buy” rating in a research report on Wednesday, January 21st. Citizens Jmp restated a “market perform” rating on shares of Netflix in a research report on Wednesday. Argus reduced their price target on shares of Netflix from $141.00 to $110.00 and set a “buy” rating for the company in a research report on Thursday, January 22nd. Piper Sandler restated a “positive” rating and set a $103.00 price target (down from $140.00) on shares of Netflix in a research report on Wednesday, January 21st. Finally, Arete Research upgraded shares of Netflix from a “neutral” rating to a “buy” rating in a research report on Friday, February 27th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and thirteen have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $115.70.

Insider Activity at Netflix

In related news, insider David A. Hyman sold 5,727 shares of the company’s stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $81.06, for a total transaction of $464,230.62. Following the completion of the sale, the insider owned 316,100 shares of the company’s stock, valued at approximately $25,623,066. This represents a 1.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Spencer Adam Neumann sold 28,630 shares of the company’s stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $98.00, for a total transaction of $2,805,740.00. Following the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $7,231,126. This represents a 27.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,487,794 shares of company stock worth $136,255,772 in the last 90 days. 1.37% of the stock is owned by insiders.

Institutional Trading of Netflix

Several large investors have recently bought and sold shares of the business. Sivia Capital Partners LLC grew its stake in shares of Netflix by 21.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after buying an additional 246 shares during the period. Schnieders Capital Management LLC. grew its stake in shares of Netflix by 12.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock valued at $2,832,000 after buying an additional 228 shares during the period. Brighton Jones LLC grew its stake in shares of Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after buying an additional 257 shares during the period. Wiser Advisor Group LLC purchased a new stake in shares of Netflix in the 3rd quarter valued at approximately $114,000. Finally, Rossby Financial LCC grew its stake in shares of Netflix by 425.8% in the 4th quarter. Rossby Financial LCC now owns 1,162 shares of the Internet television network’s stock valued at $109,000 after buying an additional 941 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

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.