Erste Group Bank Decreases Earnings Estimates for Netflix

Key Points

• Erste Group Bank marginally lowered its FY2026 EPS estimate for Netflix to $3.14 (from $3.15) and maintained a Buy rating, also forecasting FY2027 EPS of $3.85.
• Netflix beat Q4 estimates with $0.56 EPS and $12.05 billion revenue, set Q1 2026 guidance at $0.760 EPS, and carries a Street consensus of Moderate Buy with a $115.10 target amid recent analyst upgrades.
• Insiders sold about 1.54 million shares (~$141.1 million) in the last three months, while institutional ownership is high (80.93%) and major funds materially increased their stakes.

Netflix, Inc. (NASDAQ:NFLX - Free Report) - Equities researchers at Erste Group Bank lowered their FY2026 earnings estimates for shares of Netflix in a research note issued to investors on Thursday, April 2nd. Erste Group Bank analyst H. Engel now anticipates that the Internet television network will post earnings per share of $3.14 for the year, down from their previous forecast of $3.15. Erste Group Bank currently has a "Buy" rating on the stock. The consensus estimate for Netflix's current full-year earnings is $24.58 per share. Erste Group Bank also issued estimates for Netflix's FY2027 earnings at $3.85 EPS.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, topping the consensus estimate of $0.55 by $0.01. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The firm had revenue of $12.05 billion for the quarter, compared to analysts' expectations of $11.97 billion. During the same quarter last year, the firm earned $0.43 EPS. The company's quarterly revenue was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS.

Several other equities research analysts also recently issued reports on NFLX. Citizens Jmp started coverage on Netflix in a research report on Monday, March 30th. They set a "market perform" rating on the stock. Wedbush restated an "outperform" rating and set a $115.00 target price on shares of Netflix in a research report on Friday, February 20th. Cfra upgraded Netflix from a "hold" rating to a "buy" rating and set a $115.00 target price on the stock in a research report on Friday, March 6th. Rothschild & Co Redburn set a $120.00 target price on Netflix in a research report on Wednesday, January 21st. Finally, Canaccord Genuity Group set a $125.00 target price on Netflix and gave the stock a "buy" rating in a research report on Wednesday, January 21st. Two analysts have rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, Netflix presently has a consensus rating of "Moderate Buy" and a consensus target price of $115.10.

Netflix Trading Up 0.6%

Shares of NFLX stock opened at $99.39 on Thursday. The company has a 50 day moving average of $89.11 and a 200-day moving average of $99.25. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51. Netflix has a 12-month low of $75.01 and a 12-month high of $134.12. The firm has a market cap of $419.64 billion, a P/E ratio of 39.33, a PEG ratio of 1.50 and a beta of 1.67.

Insider Buying and Selling

In related news, insider David A. Hyman sold 23,439 shares of the company's stock in a transaction on Friday, January 16th. The shares were sold at an average price of $88.11, for a total value of $2,065,210.29. Following the completion of the transaction, the insider directly owned 316,100 shares in the company, valued at approximately $27,851,571. The trade was a 6.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Bradford L. Smith sold 31,790 shares of the company's stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $88.86, for a total transaction of $2,824,859.40. Following the completion of the transaction, the director owned 79,690 shares of the company's stock, valued at $7,081,253.40. This trade represents a 28.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,543,023 shares of company stock valued at $141,145,842 in the last three months. 1.37% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its stake in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. State Street Corp lifted its stake in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC lifted its stake in Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors lifted its stake in Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in Netflix by 685.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the last quarter. 80.93% of the stock is owned by institutional investors.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Oppenheimer kept an “Outperform” on NFLX and raised its price target to $135, citing better revenue visibility as price hikes roll through and stronger margin prospects. Oppenheimer Bullish on Netflix
• Positive Sentiment: Goldman Sachs upgraded Netflix on improved growth outlook and raised its target (coverage highlighted by media), signaling renewed sell‑side confidence that supports the rally. Netflix Wins Goldman Upgrade
• Positive Sentiment: Jefferies reiterated a Buy and analysts (and other shops) expect recent subscription price increases to lift full‑year guidance and margins — a core reason funds are rotating back into the name. Netflix price increases expected to lift full-year guidance
• Positive Sentiment: Product/market expansion: Netflix launched “Playground,” an ad‑free kids’ gaming app, and is pushing partnerships (sports/dining, Argentina focus) that expand engagement and monetization levers beyond streaming. These initiatives support longer‑term ARPU and retention narratives. Netflix (NFLX) Kicks Off ‘Playground’ App for Ad-Free Kids Gaming
• Neutral Sentiment: Rosenblatt raised a price target to $96 — a modest call (below some other targets) that reflects mixed valuation views and keeps debate alive about fair value amid faster profitability. Rosenblatt Securities Raises Netflix Price Target to $96
• Neutral Sentiment: Investors are watching April 16 (next earnings/updates) as estimates and guidance will determine whether price increases and new products translate into sustained revenue/margin beats. Dear Netflix Stock Fans, Mark Your Calendars for April 16
• Negative Sentiment: Regulatory/legal risk: An Italian court ordered Netflix to refund subscribers over repeated price hikes, potentially meaning hundreds of euros per customer if the ruling stands — an appeal is pending but the headline raises consumer‑backlash and regulatory risk concerns. Netflix told by court to refund customers over repeated price hikes

Netflix Company Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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