Streaming giant Netflix (NFLX) is scheduled to announce its third-quarter earnings on October 21. Ahead of the Q3 earnings, analysts at UBS and KeyBanc reiterated their bullish stance on NFLX stock, reflecting confidence in the company’s ability to deliver strong performance. Meanwhile, Wall Street expects Netflix to report 29% year-over-year growth in its Q3 earnings per share (EPS) to $6.96. Revenue is estimated to rise 17% to $11.51 billion.
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Top UBS Analyst Is Optimistic About Netflix’s Q3 Earnings
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 Q3 2025.
Hodulik believes that the return of marquee shows, like Squid Game, and new hits like 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.
KeyBanc Analyst Weighs in on NFLX Q3 Earnings Expectations
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.”
Is NFLX Stock a Good Buy?
Heading into the Q3 results, Wall Street has a Moderate Buy consensus rating on Netflix stock based on 27 Buys, nine Holds, and one Sell recommendation. The average NFLX stock price target of $1,402.74 indicates 19% upside potential. NFLX stock has risen 33% year-to-date.
