Netflix (NASDAQ:NFLX) Releases Q3 2026 Earnings Guidance

Key Points

• Netflix lowered its Q3 2026 outlook, guiding for EPS of 0.82 versus Wall Street’s 0.84 estimate and revenue of $12.9 billion versus the $13.0 billion consensus.
• The company’s latest earnings beat expectations slightly, with Q2 EPS of $0.80 topping estimates by a penny, while revenue of $12.56 billion came in just below forecasts.
• Investor sentiment was mixed to negative after the guidance update, as analysts continued to be broadly constructive but concerns grew around slowing engagement and reduced transparency in key viewing metrics.

Netflix (NASDAQ:NFLX - Get Free Report) updated its third quarter 2026 earnings guidance on Friday morning. The company provided earnings per share guidance of 0.820-0.820 for the period, compared to the consensus EPS estimate of 0.840. The company issued revenue guidance of $12.9 billion-$12.9 billion, compared to the consensus revenue estimate of $13.0 billion. Netflix also updated its FY 2026 guidance to EPS.

Netflix Trading Up 0.9%

Shares of NFLX stock opened at $74.35 on Friday. Netflix has a 1-year low of $70.86 and a 1-year high of $127.75. The firm has a market capitalization of $313.07 billion, a PE ratio of 24.01, a P/E/G ratio of 0.94 and a beta of 1.52. The business's fifty day moving average price is $80.52 and its 200 day moving average price is $87.03. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping analysts' consensus estimates of $0.79 by $0.01. The company had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.Netflix's quarterly revenue was up 13.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.72 earnings per share. As a group, sell-side analysts forecast that Netflix will post 3.6 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research firms recently issued reports on NFLX. Deutsche Bank Aktiengesellschaft upped their target price on Netflix from $98.00 to $100.00 and gave the company a "hold" rating in a research note on Tuesday, April 14th. Wedbush restated an "outperform" rating and issued a $118.00 price objective on shares of Netflix in a research report on Thursday, April 16th. Daiwa Securities Group lifted their price objective on Netflix from $97.00 to $102.00 and gave the stock an "outperform" rating in a research report on Thursday, April 23rd. Barclays reaffirmed a "reduce" rating on shares of Netflix in a research note on Thursday. Finally, Piper Sandler reiterated an "overweight" rating and set a $115.00 price objective (up from $103.00) on shares of Netflix in a research note on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $110.53.

Insiders Place Their Bets

In related news, Director Reed Hastings sold 407,550 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $93.13, for a total transaction of $37,955,131.50. Following the sale, the director owned 3,940 shares in the company, valued at $366,932.20. This represents a 99.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total value of $2,402,636.64. Following the completion of the transaction, the chief executive officer owned 284,804 shares of the company's stock, valued at approximately $25,054,207.88. The trade was a 8.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 899,839 shares of company stock worth $80,141,661. Corporate insiders own 1.24% of the company's stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continued to post strong underlying profitability, with operating income of $4.19 billion and earnings per share slightly ahead of estimates. Netflix Q2 2026 earnings report
• Positive Sentiment: Some analysts remained constructive, with Citi reiterating a Buy rating and other bulls pointing to margin expansion, ad growth, and stable engagement as longer-term support. Citi maintains Buy rating on Netflix
• Neutral Sentiment: Netflix also highlighted new growth avenues such as advertising, live events, video games, creator content, and vertical video, which may help the long-term story but did not offset the near-term disappointment. Netflix new growth initiatives
• Negative Sentiment: Management’s weaker Q3 guidance and reduced disclosure of viewing-hour data intensified investor worries about slowing engagement and less transparency, adding to the selloff. Reuters on Netflix weak forecast
• Negative Sentiment: Broader tech weakness is also weighing on sentiment, with a Nasdaq selloff and concern around AI spending and semiconductor stocks amplifying pressure on NFLX shares. Tech selloff intensifies

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of NFLX. Imprint Wealth LLC bought a new stake in Netflix during the 3rd quarter valued at $25,000. Atlas Capital Advisors Inc. bought a new stake in shares of Netflix in the 4th quarter worth approximately $26,000. Jessup Wealth Management Inc bought a new stake in shares of Netflix in the 4th quarter worth approximately $27,000. IFC & Insurance Marketing Inc. acquired a new stake in Netflix during the fourth quarter valued at approximately $34,000. Finally, Wilkerson Advisory Group LLC bought a new stake in Netflix during the fourth quarter worth approximately $34,000. 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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