Netflix (NFLX) Reports 16% Revenue Growth in 2025, Ad Revenue Set to Double
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Revenue Growth Highlight: Netflix achieved a 16% revenue growth in 2025, with operating profit rising approximately 30%, demonstrating strong performance in expanding margins and free cash flow, with a forecasted revenue of $51 billion for 2026, reflecting a 14% year-on-year increase.
- Doubling Ad Revenue: Ad sales revenue grew 2.5 times in 2025, with expectations to double again to about $3 billion in 2026, indicating that the company's strategic investments in advertising are yielding results and further driving overall revenue growth.
- Acquisition Strategy Progress: Netflix is actively pursuing the acquisition of Warner Bros. Studios and HBO, with Sarandos emphasizing that this move will serve as a strategic accelerant, enhancing the company's competitiveness through improved content diversity and quality.
- Investment and Spending Plans: CFO Neumann noted that while content amortization is expected to increase by about 10% year-over-year, the company still aims for a 31.5% operating margin in 2026, reflecting a commitment to maintaining profitability while increasing investments.
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.
