Netflix (NFLX) Q4 Revenue Grows 17.6%, Paid Subscribers Exceed 325 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
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Source: NASDAQ.COM
- Accelerated Revenue Growth: Netflix's Q4 revenue increased by 17.6% year-over-year, accelerating from 17.2% growth in Q3 2025, yet concerns over future growth led to a 5% drop in after-hours trading.
- Improved Profitability: The company's operating margin expanded from 22.2% in Q4 2024 to 24.5%, indicating significant progress in cost control and profitability enhancement, despite a lukewarm market reaction.
- Strong Cash Flow: Netflix reported free cash flow of approximately $1.9 billion in Q4, up from $1.4 billion in the same quarter of 2024, showcasing improvements in financial management and operational efficiency.
- Advertising Revenue Surge: The company's advertising revenue reached $1.5 billion in 2025, 2.5 times that of 2024, providing a strong support for revenue diversification even as overall growth slows.
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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: 83.160
Low
92.00
Averages
129.47
High
152.50
Current: 83.160
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.
Netflix Faces Stock Decline Amid Growth Concerns and Bidding War
- Stock Decline: As of January 26, Netflix's stock has dropped 9%, reflecting investor concerns about the company's future performance, particularly amid its bidding war for Warner Bros., with an alarming $83 billion price tag.
- Earnings Performance: In Q4 2025, Netflix reported revenue of $12.1 billion, an 18% year-over-year increase, although the overall growth rate was 16%, which rose to 17% when excluding foreign exchange effects, indicating steady growth.
- Future Growth Outlook: Netflix anticipates a growth rate of 12% to 14% for 2026, a notable slowdown especially with ad revenue expected to double, suggesting consumers may be less willing to pay for higher-priced streaming plans.
- Valuation Pressure: With a P/E ratio of 34 compared to the S&P 500's 27, Netflix's high valuation comes with elevated expectations, and despite nearing a 52-week low, the stock may face significant downward pressure, requiring investors to brace for volatility ahead.
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- Robo-Taxi Launch: Tesla has launched its robo-taxis without safety drivers in Austin, Texas, marking a significant advancement in its autonomous driving technology, although it still trails competitors like Waymo, indicating Tesla's ongoing commitment to innovation in this space.
- Insurance Cost Reduction: Tesla's partnership with Lemonade introduces a pay-per-mile insurance product that offers a 50% discount when full self-driving is activated, alleviating financial burdens for users and enhancing the market appeal of Tesla's autonomous driving services.
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- Subscription Model Challenges: Tesla's introduction of a $100 monthly subscription for full self-driving raises potential revenue but faces challenges in consumer acceptance, especially as other manufacturers offer more standard features without additional costs.
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