Netflix (NASDAQ:NFLX) Issues Q1 2026 Earnings Guidance

Key Points

• Netflix issued Q1 2026 guidance of $0.760 EPS (vs. a consensus of $0.810) and revenue guidance of $12.2 billion, indicating an EPS shortfall relative to Street expectations while revenue was in line.
• Shares fell (trading near $87.26 on heavy volume) as investor concern mounted after Netflix amended an all‑cash offer for Warner Bros. and reportedly secured more bank debt to fund it, a development compounded by notable insider selling and several analysts trimming targets.

Netflix (NASDAQ:NFLX - Get Free Report) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.760-0.760 for the period, compared to the consensus EPS estimate of 0.810. The company issued revenue guidance of $12.2 billion-$12.2 billion, compared to the consensus revenue estimate of $12.2 billion. Netflix also updated its FY 2026 guidance to EPS.

Netflix Price Performance

Shares of Netflix stock traded down $0.74 on Tuesday, hitting $87.26. The company had a trading volume of 102,140,474 shares, compared to its average volume of 47,457,699. Netflix has a 52 week low of $82.11 and a 52 week high of $134.12. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The business has a 50-day simple moving average of $98.48 and a 200-day simple moving average of $112.51. The company has a market cap of $369.75 billion, a PE ratio of 36.45 and a beta of 1.71.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $6.96 by ($1.09). Netflix had a net margin of 24.05% and a return on equity of 41.86%. The business had revenue of $11.51 billion during the quarter, compared to analysts' expectations of $11.51 billion. During the same quarter in the previous year, the company earned $5.40 EPS. Netflix's revenue for the quarter was up 17.2% on a year-over-year basis. Research analysts expect that Netflix will post 24.58 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on NFLX shares. Wolfe Research dropped their target price on shares of Netflix from $139.00 to $121.00 and set an "outperform" rating for the company in a research report on Monday, December 15th. Arete Research upped their target price on shares of Netflix from $83.30 to $108.40 and gave the company a "neutral" rating in a research report on Tuesday, October 28th. Canaccord Genuity Group reissued a "buy" rating and set a $152.50 price target on shares of Netflix in a research report on Monday, December 8th. President Capital raised shares of Netflix from a "neutral" rating to a "buy" rating and set a $130.00 target price for the company in a research note on Monday, November 3rd. Finally, Rosenblatt Securities restated a "neutral" rating and issued a $105.00 price target on shares of Netflix in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Netflix has an average rating of "Moderate Buy" and a consensus target price of $127.13.

Insider Buying and Selling at Netflix

In other news, CEO Gregory K. Peters sold 20,270 shares of the firm's stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $109.57, for a total value of $2,220,943.36. Following the transaction, the chief executive officer owned 127,810 shares in the company, valued at $14,003,886.08. This trade represents a 13.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider David A. Hyman sold 314,620 shares of the company's stock in a transaction dated Tuesday, November 4th. The stock was sold at an average price of $109.98, for a total transaction of $34,603,166.08. Following the completion of the sale, the insider directly owned 316,100 shares of the company's stock, valued at $34,765,942.40. The trade was a 49.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 1,630,160 shares of company stock valued at $171,076,053. 1.37% of the stock is owned by corporate insiders.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Holiday/streaming momentum and product upgrades — Netflix reported stronger engagement metrics (viewership +10% in recent streaming data) and is testing a “voting” feature, which together signal healthy content-driven growth that could support subscriber and ad revenue beat potential in Q4. Netflix Stock (NFLX) Rises Ahead of Q4 on Streaming Gains, Voting Feature
• Positive Sentiment: Content tailwinds into earnings — Several outlets and analysts point to a strong holiday season (final season of Stranger Things, NFL games, other hits) that could drive upside to engagement, subscriber metrics and ad monetization on the Q4 report. From NFL Games to Stranger Things, Netflix Just Had Its Biggest Holiday Season Ever
• Neutral Sentiment: Earnings expectations and event risk — NFLX reports Q4 after the bell with Street estimates (consensus EPS and revenue targets) and options-implied moves near ~7–8%, meaning the stock is set up for a sizeable short-term swing regardless of direction. Traders should expect heightened volatility around the release. Netflix reports earnings after the bell. Here's what to expect
• Negative Sentiment: All-cash Warner Bros. Discovery bid raises financing and leverage concerns — Netflix amended the deal to an all-cash structure (same headline price) to secure board/shareholder support and fend off Paramount, but that increases near-term cash needs and investor worry about leverage and integration risk. Netflix submits amended all-cash offer for Warner Bros, wins board support
• Negative Sentiment: Debt and financing details emerging — Reports say Netflix has secured more bank debt to fund the amended all-cash offer, a development that can pressure margins/credit metrics and fuel investor concern if earnings or cash flow disappoint. Netflix secures more debt from banks to buy Warner's assets under new all-cash offer
• Negative Sentiment: Analyst pressure and valuation adjustments — Some firms have trimmed targets and warned the Warner deal could overshadow core growth; KeyBanc cut its price target recently, reflecting near-term uncertainty. KeyBanc cuts PT on Netflix, Inc. (NFLX) to $110 from $139
• Negative Sentiment: Insider selling noted — Recent director-level share sales have been flagged by filings; while not uncommon, insider disposals can add to negative sentiment ahead of a major earnings and M&A moment. Insider Selling: Netflix Director Sells $2.8M in Stock

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Imprint Wealth LLC purchased a new position in shares of Netflix during the third quarter valued at about $25,000. Wealth Watch Advisors INC purchased a new position in Netflix during the 3rd quarter valued at $103,000. Wiser Advisor Group LLC bought a new stake in shares of Netflix during the third quarter worth $114,000. Strategic Wealth Investment Group LLC purchased a new stake in shares of Netflix in the second quarter valued at approximately $121,000. Finally, Beaird Harris Wealth Management LLC grew its position in shares of Netflix by 9.6% during the 3rd quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock worth $137,000 after buying an additional 10 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

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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