Netflix (NASDAQ:NFLX) Issues Q2 2026 Earnings Guidance

Key Points

• Q2 2026 guidance: Netflix set EPS guidance of $0.78, below the consensus of $0.84, while revenue guidance of $12.6 billion matched estimates.
• Analyst and market backdrop: Analysts remain broadly constructive (MarketBeat consensus: "Moderate Buy," $115.80 target) and bullish thesis centers on price hikes and a growing ad business as revenue/margin tailwinds.
• Insider selling: Director Reed Hastings sold 420,550 shares (~$40.2M) under a 10b5-1 plan, and insiders sold 1.51M shares (~$138.3M) in the last three months, with insiders owning 1.37% of the stock.

Netflix (NASDAQ:NFLX - Get Free Report) updated its second quarter 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 0.780-0.780 for the period, compared to the consensus earnings per share estimate of 0.840. The company issued revenue guidance of $12.6 billion-$12.6 billion, compared to the consensus revenue estimate of $12.6 billion.

Netflix Price Performance

NFLX stock traded up $0.08 during trading on Thursday, hitting $107.79. 51,464,622 shares of the company's stock traded hands, compared to its average volume of 47,172,727. Netflix has a 52 week low of $75.01 and a 52 week high of $134.12. The stock has a market capitalization of $455.11 billion, a price-to-earnings ratio of 42.66, a P/E/G ratio of 1.61 and a beta of 1.67. The business has a fifty day simple moving average of $91.36 and a 200 day simple moving average of $98.65. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.19.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.01. The company had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. Netflix had a return on equity of 43.26% and a net margin of 24.30%.Netflix's quarterly revenue was up 17.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, research analysts expect that Netflix will post 24.58 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on NFLX. Wedbush reiterated an "outperform" rating on shares of Netflix in a research note on Thursday. Arete Research upgraded shares of Netflix from a "neutral" rating to a "buy" rating in a report on Friday, February 27th. Bank of America reduced their price target on shares of Netflix from $149.00 to $125.00 and set a "buy" rating on the stock in a research note on Friday, March 6th. Cfra raised shares of Netflix from a "hold" rating to a "buy" rating and set a $115.00 price objective for the company in a research report on Friday, March 6th. Finally, Oppenheimer upped their target price on shares of Netflix from $125.00 to $135.00 and gave the stock an "outperform" rating in a research note on Friday, March 27th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $115.80.

Insider Transactions at Netflix

In other news, Director Reed Hastings sold 420,550 shares of the business's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $95.49, for a total value of $40,158,319.50. Following the completion of the sale, the director owned 3,940 shares in the company, valued at approximately $376,230.60. The trade was a 99.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David A. Hyman sold 5,727 shares of the business's stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $81.06, for a total transaction of $464,230.62. Following the completion of the sale, the insider owned 316,100 shares of the company's stock, valued at approximately $25,623,066. This represents a 1.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,511,233 shares of company stock valued at $138,320,982 over the last three months. 1.37% of the stock is currently owned by corporate insiders.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Prediction markets and traders are pricing in a strong quarter — Polymarket and other markets show a high probability Netflix will beat EPS estimates, and options imply a sizable post-earnings move. This boosts short-term buyer interest ahead of the print. Prediction Market Preview
• Positive Sentiment: Analysts have ramped up expectations and some firms reiterated bullish views (Guggenheim raised price targets; Citizens highlights ~$1.1B upside from U.S. price hikes). Upgrades and favorable notes are supporting the rally. Analyst Expectation Revamp
• Positive Sentiment: Monetization tailwinds — recent price increases and a growing ad business (reports cite a potential multi-billion dollar annual ad engine) should lift revenue and margins if engagement holds, a key bullish thesis for investors. Ad Business & Price Hikes
• Positive Sentiment: High-profile supporters — media figures like Jim Cramer continue to champion Netflix as a market leader, which can attract retail flows and support sentiment into earnings. Jim Cramer Commentary
• Neutral Sentiment: Street consensus and guidance focus — consensus expects ~ $0.76–$0.79 EPS and ~$12.17–$12.18B revenue; Netflix set Q1 guidance at $0.76. The print will likely move the stock depending on engagement metrics and ad revenue cadence. Earnings Expectations
• Neutral Sentiment: Technical and market backdrop — NFLX recently cleared the 200-day moving average and broader indices hitting records is keeping risk-on flows into large-cap growth names ahead of earnings. These factors support intraday momentum but don’t guarantee direction post-release. Technical Breakout
• Negative Sentiment: Strategic uncertainty after the failed Warner Bros. bid — while Netflix receives a breakup windfall, the company must now show it can grow organically vs. a strengthened competitor (potential Warner Bros + Paramount Skydance). Investors will watch content ROI closely. Warner Bros Bid Fallout
• Negative Sentiment: Execution and competition risks — some analysts (e.g., Needham) warn Netflix must prove ad execution and content choices can fend off hyperscalers and competitors; failure to show progress could trigger downside. Analyst Warning
• Negative Sentiment: Consumer backlash risk — online complaints and cancellations tied to price increases could pressure engagement/ARPU if the company can’t sustain perceived value. Investors will watch churn and viewing hours in the report. Consumer Backlash

Institutional Trading of Netflix

A number of hedge funds have recently bought and sold shares of NFLX. Pacific Sun Financial Corp increased its position in Netflix by 1.6% during the 3rd quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock valued at $688,000 after buying an additional 9 shares in the last quarter. Beaird Harris Wealth Management LLC boosted its holdings in Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock worth $137,000 after acquiring an additional 10 shares in the last quarter. Monograph Wealth Advisors LLC grew its stake in shares of Netflix by 1.8% during the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network's stock worth $913,000 after acquiring an additional 12 shares during the last quarter. Resources Management Corp CT ADV grew its stake in shares of Netflix by 2.0% during the second quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network's stock worth $1,110,000 after acquiring an additional 16 shares during the last quarter. Finally, Sompo Asset Management Co. Ltd. increased its holdings in shares of Netflix by 1.4% during the second quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network's stock valued at $2,009,000 after acquiring an additional 20 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

About Netflix

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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