Netflix (NFLX) Q4 Earnings Beat Expectations, 2026 Revenue Forecast of $50.7B to $51.7B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Highlights: Netflix reported a Q4 GAAP EPS of $0.56, beating expectations by $0.01, with revenue of $12.05 billion reflecting a 17.6% year-over-year increase, surpassing estimates by $80 million, indicating strong market performance.
- 2026 Revenue Forecast: The company forecasts 2026 revenue between $50.7 billion and $51.7 billion based on January 1, 2026, foreign exchange rates, slightly below the consensus of $50.98 billion, yet representing a 12%-14% year-over-year growth driven by membership and pricing increases.
- Ad Revenue Growth: Netflix anticipates a near doubling of ad revenue in 2026 compared to 2025, which will further enhance overall revenue growth, while targeting an operating margin increase from 29.5% in 2025 to 31.5% in 2026, indicating improved profitability.
- Acquisition-Related Expenses: The 2026 operating margin target includes approximately $275 million in acquisition-related expenses, highlighting Netflix's strategic focus on expanding its content library and market share through acquisitions.
Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 88.000
Low
92.00
Averages
129.47
High
152.50
Current: 88.000
Low
92.00
Averages
129.47
High
152.50
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
