Netflix (NASDAQ:NFLX) Announces Earnings Results, Beats Expectations By $0.05 EPS

Netflix (NASDAQ:NFLX) issued its quarterly earnings data on Tuesday. The Internet television network reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.82 by $0.05, FiscalAI reports. The business had revenue of $12.87 billion for the quarter, compared to analysts’ expectations of $12.87 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.

Netflix Stock Performance

NASDAQ:NFLX traded down $1.16 on Tuesday, reaching $68.69. 57,007,730 shares of the company’s stock were exchanged, compared to its average volume of 42,205,063. The stock has a fifty day simple moving average of $75.04 and a 200-day simple moving average of $80.38. The firm has a market cap of $286.02 billion, a price-to-earnings ratio of 21.62, a P/E/G ratio of 1.00 and a beta of 1.62. Netflix has a 52 week low of $65.08 and a 52 week high of $124.86. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14.

Insiders Place Their Bets

In other news, Director Richard N. Barton sold 2,160 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the sale, the director directly owned 246 shares in the company, valued at approximately $18,474.60. The trade was a 89.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 105,850 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer directly owned 206,266 shares of the company’s stock, valued at $15,063,605.98. The trade was a 33.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 179,045 shares of company stock worth $13,132,194 in the last three months. Insiders own 1.24% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently issued reports on NFLX. HSBC lowered shares of Netflix from a “buy” rating to a “hold” rating and reduced their target price for the stock from $96.00 to $76.00 in a research note on Tuesday, September 22nd. Wells Fargo & Company downgraded Netflix from a “neutral” rating to an “underweight” rating and cut their target price for the stock from $80.00 to $57.00 in a research note on Friday, September 18th. TD Cowen reaffirmed a “buy” rating and set a $100.00 target price on shares of Netflix in a research report on Monday, October 5th. Piper Sandler reaffirmed an “overweight” rating and set a $85.00 target price (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. Finally, Jefferies Financial Group set a $85.00 target price on Netflix and gave the stock a “buy” rating in a research note on Thursday, October 15th. Three analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, sixteen have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $93.38.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Analysts expect Netflix’s advertising business, higher subscription prices and limited churn to support quarterly results. Wedbush forecasts approximately $12.865 billion in revenue and $0.83 in earnings per share, broadly consistent with consensus expectations. Netflix heads into earnings with churn in check and ad revenue rising
• Positive Sentiment: Wall Street is watching Netflix’s push toward roughly $3 billion in 2026 advertising revenue. Stronger upfront commitments could improve monetization and provide a growth catalyst if management demonstrates meaningful progress. Analysts Eye $3 Billion Ad Revenue Surge Ahead of Netflix Earnings
• Neutral Sentiment: Options markets imply an unusually large post-earnings move of about 9%, indicating that investors expect significant volatility rather than a clear directional outcome. Traders are betting Netflix’s stock drama may be coming to an end
• Neutral Sentiment: Investors will focus on earnings of about $0.82 per share and revenue near $12.87 billion, along with guidance, advertising growth, live-content costs and management’s outlook for engagement. Here’s what to expect when Netflix reports earnings
• Negative Sentiment: Sentiment remains weak because Netflix reportedly has not added net U.S. subscribers in any month this year, while viewer engagement has declined. Investors fear the company may struggle to sustain growth without a stronger content slate. Netflix faces questions on user engagement
• Negative Sentiment: Netflix’s approximately 1,000 job cuts, or 6% of its workforce, and the departures of senior content executives—including film chief Dan Lin—raise concerns about creative execution and the company’s growth strategy. Netflix film division boss to exit
• Negative Sentiment: Heavy trading in slightly out-of-the-money put options ahead of earnings reflects hedging or bearish speculation, adding to near-term pressure, although options activity alone is not a reliable forecast. Unusual Netflix put options activity
• Negative Sentiment: Investors are also assessing stronger potential competition from the Skydance combination involving Paramount and HBO-related assets, which could increase pressure on Netflix’s content spending and subscriber growth. Could Skydance pose a threat to Netflix’s future growth?

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.