Netflix (NASDAQ:NFLX) Announces Q4 2026 Earnings Guidance

Key Points

• Netflix guided below consensus for Q4 2026: EPS guidance is $0.67 versus analysts’ $0.73 estimate, while revenue guidance of $13.4 billion trails the $13.5 billion consensus.
• The company’s latest quarter was stronger than expected, with EPS of $0.87 beating estimates by $0.05 and revenue rising 11.9% year over year to $12.87 billion.
• Shares fell to about $65 following the outlook, amid concerns over slowing engagement and reduced advertising-revenue expectations; analysts nevertheless maintain a “Moderate Buy” consensus with an average price target of $89.94.

Netflix (NASDAQ:NFLX - Get Free Report) updated its fourth quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.670-0.670 for the period, compared to the consensus EPS estimate of 0.730. The company issued revenue guidance of $13.4 billion, compared to the consensus revenue estimate of $13.5 billion. Netflix also updated its FY 2026 guidance to EPS.

Netflix Stock Performance

Shares of NASDAQ:NFLX traded down $3.65 during trading on Wednesday, hitting $65.04. 101,075,288 shares of the stock were exchanged, compared to its average volume of 42,641,000. The company has a market capitalization of $270.82 billion, a price-to-earnings ratio of 20.47, a price-to-earnings-growth ratio of 0.99 and a beta of 1.62. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. Netflix has a 1-year low of $64.10 and a 1-year high of $116.73. The company's fifty day simple moving average is $74.92 and its 200-day simple moving average is $80.20.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating analysts' consensus estimates of $0.82 by $0.05. The business had revenue of $12.87 billion during the quarter, compared to analyst estimates of $12.87 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%. Netflix's revenue was up 11.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.59 earnings per share. Sell-side analysts expect that Netflix will post 3.59 EPS for the current fiscal year.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Sanford C. Bernstein reissued an "outperform" rating and issued a $80.00 target price (down from $95.00) on shares of Netflix in a research note on Wednesday. Rosenblatt Securities set a $71.00 price target on shares of Netflix and gave the stock a "neutral" rating in a research note on Wednesday. Rothschild & Co Redburn cut their price target on shares of Netflix from $120.00 to $93.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Robert W. Baird set a $90.00 price objective on Netflix and gave the company an "outperform" rating in a report on Wednesday, July 22nd. Finally, Wells Fargo & Company lowered Netflix from a "neutral" rating to an "underweight" rating and lowered their price objective for the company from $80.00 to $57.00 in a research note on Friday, September 18th. Three analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, sixteen have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $89.94.

Insiders Place Their Bets

In other news, CEO Gregory Peters sold 27,312 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the sale, the chief executive officer owned 120,931 shares of the company's stock, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Spencer Neumann sold 9,248 shares of the business's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of the transaction, the chief financial officer owned 73,787 shares in the company, valued at approximately $5,592,316.73. This trade represents a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 179,045 shares of company stock worth $13,132,194 in the last quarter. 1.24% of the stock is owned by corporate insiders.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix reported third-quarter EPS of $0.87, above the $0.82 consensus estimate. Revenue rose approximately 12% year over year to $12.87 billion, while operating margin expanded to 34.6% and net income increased 44% to about $3.66 billion. Netflix Q3 results
• Positive Sentiment: Some analysts view the selloff as an opportunity: BMO reportedly sees substantial upside, while TD Cowen maintained a Buy rating with a $100 target. UBS said Netflix’s fundamental positioning remains intact, and management continues to target double-digit revenue growth into 2027. BMO analyst view
• Neutral Sentiment: Management is pursuing additional growth avenues, including theatrical releases, live events, third-party content partnerships and a revamped content organization. However, investors want evidence that these initiatives can improve viewing engagement and produce more breakout hits. Netflix theatrical strategy
• Negative Sentiment: Netflix forecast fourth-quarter revenue of roughly $13.44 billion, below analysts’ expectations of about $13.52 billion, implying another quarter of slowing sales growth. The company also reduced its 2026 advertising-revenue outlook to approximately $2.7 billion from $3 billion because product rollouts are progressing more slowly than expected. Netflix weak fourth-quarter forecast
• Negative Sentiment: Investors remain concerned about stagnant or modest viewing-hour growth, particularly in the U.S., as YouTube, TikTok and other streaming services compete for attention. Co-CEO Ted Sarandos acknowledged that Netflix needs better execution and stronger U.S. programming. Netflix engagement concerns
• Negative Sentiment: Wall Street responded with multiple price-target reductions, including cuts from JPMorgan, Bank of America and Guggenheim, while Needham downgraded NFLX to Hold. Lower 2026 free-cash-flow guidance and restructuring costs that are expected to pressure fourth-quarter margins added to the selling pressure. Netflix analyst price-target cuts

About Netflix

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.

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