Netflix (NFLX) Reports 17.6% Revenue Growth to $12.1B in 2025 Amid 40% Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Revenue Growth Highlight: Netflix achieved a 17.6% revenue increase to $12.1 billion in 2025, surpassing the market expectation of $11.97 billion, demonstrating its continued appeal in a competitive streaming market, despite a nearly 40% decline from last summer's peak.
- Profitability Improvement: The company's operating margin rose from 22.2% to 24.5%, with projected operating income reaching $16.1 billion in 2026, reflecting a 21% increase from 2025, indicating effective strategies in cost control and profitability enhancement.
- Cautious Future Outlook: Although Netflix anticipates a 12%-14% revenue growth to $50.7-$51.7 billion in 2026, the expected slowdown in revenue growth raises concerns about future expansion, particularly following the Warner Bros. Discovery acquisition.
- Share Buyback Suspension: Netflix has decided to pause share buybacks to raise cash for the acquisition, which may impact investor confidence, especially given the stock's recent decline, highlighting the company's cautious approach to capital allocation.
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.
