Netflix (NFLX) Reports 17.6% Q4 Revenue Growth, But 2026 Growth Guidance Slows
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Revenue Growth Highlight: Netflix's Q4 revenue increased by 17.6% year-over-year, accelerating from 17.2% growth in Q3 2025, indicating strong market performance despite a stock price drop due to lowered future expectations.
- Profitability Improvement: The company's operating margin reached 24.5% in Q4, up from 22.2% in Q4 2024, leading to a 30% increase in earnings per share, showcasing significant enhancements in profitability.
- Cash Flow Performance: Netflix reported free cash flow of approximately $1.9 billion in Q4, a 35% increase from $1.4 billion in Q4 2024, reflecting improvements in financial management and operational efficiency.
- Future Growth Outlook: Although the revenue growth forecast for 2026 is set at 11% to 13%, down from 17% in 2025, management anticipates a 15.3% year-over-year revenue increase in Q1 2025, which may provide some short-term support for the stock price.
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.
