Streaming giant Netflix (NFLX) is scheduled to announce its results for the third quarter of 2025 after the market closes on Tuesday, October 21. NFLX stock has risen about 35% year-to-date, reflecting optimism about the company’s growth potential. Investors will focus on management’s commentary about engagement, ad revenues, margins, and new content. Wall Street expects Netflix to report 29% year-over-year growth in its Q3 earnings per share (EPS) to $6.96.
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Furthermore, revenue is estimated to rise 17% to $11.51 billion.
Analysts’ Views Ahead of Netflix’s Q3 Earnings
Heading into Q3 results, UBS analyst John Hodulik reiterated a Buy rating on Netflix stock with a price target of $1,495. The top-rated analyst continues to view Netflix as a secular winner that is benefiting from direct-to-consumer (DTC) rationalization and a strong content slate driving higher engagement. Hodulik expects member growth, higher pricing, and increased ad revenues to drive 17% and 25% growth in revenue and operating income, respectively, in the third quarter of 2025.
Hodulik believes that the return of popular shows like Squid Game and new hits, such as KPop Demon Hunters and Untamed, fueled higher engagement and monetization in the third quarter. He expects this trend to continue in Q4, given the releases of notable titles such as Monster, The Witcher, Stranger Things, and NFL content. Moreover, Hodulik expects the pullback at peers to drive upside to Netflix’s pricing and margins over time.
Likewise, KeyBanc analyst Justin Patterson reiterated a Buy rating on Netflix stock with a price target of $1,390. The 5-star analyst stated that he does not expect any major surprises in Netflix’s Q3 earnings, as an improving content slate has driven stronger Q3 viewership. He added that Q4 growth catalysts like Stranger Things are already known.
Patterson expects management’s commentary to suggest a slight margin expansion in 2025. The analyst believes that monetization catalysts, such as pricing and advertising, are building for 2026, which could keep revenue “higher for longer.”
AI Analyst Is Bullish on Netflix Stock Ahead of Q3 Print
Interestingly, TipRanks’ AI Analyst has assigned an Outperform rating to Netflix stock with a price target of $1,320, indicating about 10.1% upside potential. TipRanks’ AI Analyst’s rating is based on NFLX’s solid financial performance and a positive earnings outlook, partially offset by concerns over high valuation and mixed technical signals.
The AI Analyst also highlights the company’s strategic initiatives in content and advertising as key strengths, though engagement growth challenges and NFLX stock’s high P/E ratio present risks.
Options Traders Anticipate a Major Move on NFLX’s Q3 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about an 8% move in either direction in NFLX stock in reaction to Q3 2025 results.
Is NFLX Stock a Good Buy?
Overall, Wall Street has a Moderate Buy consensus rating on Netflix stock based on 23 Buys, nine Holds, and one Sell recommendation. The average NFLX stock price target of $1,389.64 indicates 16% upside potential from current levels.
