Want to see NFLX full AI Analyst Report?
Top Page
Netflix
(NASDAQ:NFLX)
Select Model
Select Model
Rating:75Outperform
Price Target:
$77.00
▼(-6.36% Downside)
Action:Reiterated
Date:10/21/26
The score is driven primarily by strong financial performance—expanding margins and robust, improving free cash flow—supported by generally positive earnings-call guidance around continued growth and margin/FCF objectives. Offsetting these strengths are weak technicals (price below key moving averages with negative MACD) and a key fundamental watch item of slowing recent revenue growth; valuation appears reasonable on P/E but offers no dividend support.
Positive Factors
Revenue and Margin Expansion
Sustained revenue growth alongside significant margin expansion indicates that Netflix is converting scale and content investment into stronger earnings power. If maintained, this combination can support reinvestment, improve resilience, and increase the company’s ability to fund future growth internally.
Negative Factors
Revenue Growth Deceleration
Decelerating revenue growth could reduce operating leverage and make future earnings increasingly dependent on continued margin expansion. Slower top-line momentum also raises the execution burden on Netflix’s content slate, pricing actions, advertising rollout, and international member growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
Sustained revenue growth alongside significant margin expansion indicates that Netflix is converting scale and content investment into stronger earnings power. If maintained, this combination can support reinvestment, improve resilience, and increase the company’s ability to fund future growth internally.
Read all positive factors
Netflix Key Performance Indicators (KPIs)
Any
Total Paid Memberships
Shows the total number of paying subscribers, indicating Netflix's market reach, revenue potential, and overall popularity among consumers.
Shows the total number of paying subscribers, indicating Netflix's market reach, revenue potential, and overall popularity among consumers.
Data provided by:
The Fly
The FlyNetflix (NFLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$290.85B
Dividend YieldN/A
Average Volume (3M)35.39M
Price to Earnings (P/E)19.5
Beta (1Y)0.93
Revenue Growth17.62%
EPS Growth34.80%
CountryUS
Employees16,000
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)3.52
Shares Outstanding4,163,939,500
10 Day Avg. Volume35,082,837
30 Day Avg. Volume35,385,733
Financial Highlights & Ratios
PEG Ratio1.34
Price to Book (P/B)14.90
Price to Sales (P/S)8.78
P/FCF Ratio41.91
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue6.01
Enterprise Value/Gross Profit11.85
Enterprise Value/Ebitda8.19
Forecast
1Y Price Target
$84.79Price Target Upside3.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering32
EPS Forecast (FY)3.59
Revenue Forecast (FY)$51.21B
Netflix Business Overview & Revenue Model
Company Description
Netflix, Inc. serves as a worldwide entertainment provider. Its comprehensive library features television series, motion pictures, documentaries, and mobile games, spanning numerous genres and languages. Members can effortlessly stream this conten...
How the Company Makes Money
Netflix primarily makes money through paid memberships (subscription revenue) for access to its streaming entertainment service. Customers pay recurring fees for subscription plans, and this membership revenue represents the core driver of the com...
Netflix Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 26, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Netflix reported healthy global retention, improving churn, strong regional performance, nearly 20% year-over-year revenue growth in India, growth across member, pricing, and advertising levers, positive early TF1 results, expanding licensing and theatrical activity, and continued investment in growth initiatives. The main challenges were slower-than-desired U.S. growth, modest view-hour growth, recent headcount reductions with a 120-basis-point Q4 cost, and advertising performance running behind an aggressive target despite growth of over 80%.Positive Updates
Core Strategy Remains Focused on Premium Entertainment
Netflix said its strategy remains unchanged: combine best-in-class entertainment with industry-leading discovery, global distribution, and monetization. Netflix originals remain the anchor, while roughly 95% of spend and nearly all revenue remain focused on the core business.
Negative Updates
U.S. Growth Is Slower Than Desired
Management said the U.S. business is working but is not growing as fast as it could or as fast as Netflix would like. The company said it needs better execution in the U.S. and wants to improve the slate from very good to great.
Read all updates
Q3-2026 Updates
Positive
Negative
Core Strategy Remains Focused on Premium Entertainment
Netflix said its strategy remains unchanged: combine best-in-class entertainment with industry-leading discovery, global distribution, and monetization. Netflix originals remain the anchor, while roughly 95% of spend and nearly all revenue remain focused on the core business.
Read all positive updates
Company Guidance
Management said it plans on delivering its full year guidance, expects strong revenue growth into 2027, and financial objectives are unchanged: sustain double-digit revenue growth, expand margins, and increase free cash flow; it will provide 2027 guidance in January, including margin guidance, and will not specifically quantify the 2027 expense impact of headcount reductions, which add about 120 basis points of cost in Q4. The ads business is still growing over 80% this year, with ad tiers planned for 15 new countries next year, while the combined ad tier ARM gap is expected to close gradually over the next several years. Netflix expects to release about 30 films theatrically this year, with a 45-day window and a wide theatrical release for “Narnia: The Magician’s Nephew” and “Charlie vs. the Chocolate Factory,” and a 47-day window for “La Bola Negra.”Netflix Financial Statement Overview
Summary
Income Statement
91
Very Positive
Balance Sheet
78
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.73B | 45.18B | 39.00B | 33.72B | 31.62B | 29.70B |
| Gross Profit | 25.21B | 21.91B | 17.96B | 14.01B | 12.45B | 12.37B |
| EBITDA | 36.48B | 30.25B | 26.31B | 21.51B | 20.33B | 19.04B |
| Net Income | 14.77B | 10.98B | 8.71B | 5.41B | 4.49B | 5.12B |
Balance Sheet | ||||||
| Total Assets | 58.68B | 55.60B | 53.63B | 48.73B | 48.59B | 44.58B |
| Cash, Cash Equivalents and Short-Term Investments | 8.22B | 9.06B | 9.58B | 7.14B | 6.06B | 6.03B |
| Total Debt | 15.13B | 14.46B | 17.99B | 16.97B | 14.35B | 18.12B |
| Total Liabilities | 29.40B | 28.98B | 28.89B | 28.14B | 27.82B | 28.74B |
| Stockholders Equity | 29.29B | 26.62B | 24.74B | 20.59B | 20.78B | 15.85B |
Cash Flow | ||||||
| Free Cash Flow | 11.38B | 9.46B | 6.92B | 6.93B | 1.62B | -131.97M |
| Operating Cash Flow | 12.31B | 10.15B | 7.36B | 7.27B | 2.03B | 392.61M |
| Investing Cash Flow | -1.59B | 1.04B | -2.18B | 541.75M | -2.08B | -1.34B |
| Financing Cash Flow | -11.73B | -10.35B | -4.07B | -5.95B | -664.25M | -1.15B |
Netflix Technical Analysis
Negative
82.23
Price Trends
74.85
Negative
75.16
Negative
82.65
Negative
Market Momentum
-1.18
Negative
40.51
Neutral
32.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NFLX, the sentiment is Negative. The current price of 82.23 is above the 20-day moving average (MA) of 69.97, above the 50-day MA of 74.85, and below the 200-day MA of 82.65, indicating a bearish trend. The MACD of -1.18 indicates Negative momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 32.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NFLX.
Netflix Risk Analysis
Netflix disclosed 23 risk factors in its most recent earnings report. Netflix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Netflix Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $290.85B | 19.51 | 50.41% | ― | 17.62% | 34.80% | |
71 Outperform | $189.23B | 22.98 | 7.87% | 1.34% | 5.31% | -23.96% | |
69 Neutral | $23.10B | 65.65 | 13.18% | ― | 18.52% | ― | |
68 Neutral | $26.66B | 15.36 | 14.74% | 0.85% | 5.07% | -20.95% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
NFLX
Netflix
68.69
-42.95
-38.47%
DIS
Walt Disney
111.67
0.20
0.18%
ROKU
Roku
157.57
61.54
64.08%
FOXA
Fox
67.00
8.96
15.44%
Netflix Corporate Events
Executive/Board Changes
Netflix announces board change following director resignation
Neutral
Jul 30, 2026
On July 26, 2026, Netflix, Inc. announced that Anne Sweeney resigned from its Board of Directors, effective the same day. The company stated that her departure was not related to any disagreement with Netflix, suggesting a routine governance chang...
Business Operations and StrategyPrivate Placements and Financing
Netflix Issues $1 Billion Senior Notes to Refinance Debt
Positive
Jul 22, 2026
On July 22, 2026, Netflix completed a registered public offering of $1 billion in principal amount of 5.250% senior unsecured notes due 2036, sold through a syndicate led by major investment banks. The notes were issued under existing indenture ar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.