Netflix (NASDAQ:NFLX) Posts Earnings Results, Beats Estimates By $0.47 EPS

Netflix (NASDAQ:NFLX) released its earnings results on Thursday. The Internet television network reported $1.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.76 by $0.47, FiscalAI reports. The business had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The firm’s revenue for the quarter was up 16.2% compared to the same quarter last year. During the same period last year, the business earned $6.61 earnings per share. Netflix updated its Q2 2026 guidance to 0.780-0.780 EPS.

Here are the key takeaways from Netflix’s conference call:

• Maintained full‑year guidance for 2026 with revenue growth of 12%–14% and an operating margin target of 31.5%, explicitly including a plan to roughly double advertising to about $3 billion.
• Q1 engagement and membership momentum remains strong—view hours grew in line with H2 2025, the company’s primary member quality metric hit a new high, and paid members exceed 325 million with large upside given ~45% household penetration and only ~5% global TV view share.
• Netflix walked away from the Warner Bros. deal on economic grounds but says WB‑related costs were largely within prior M&A guidance, that the exercise strengthened its M&A capabilities, and that there is no material impact to 2026 operating margin guidance.
• The ad business is expanding—advertiser count topped ~4,000 (up ~70% YoY in 2025), programmatic is >50% of non‑live ads, and management reaffirmed the $3 billion ad revenue target despite Nielsen methodology changes.
• Live events and new formats are driving incremental engagement—the World Baseball Classic drew 31.4 million viewers in Japan and produced the largest single sign‑up day there, while Netflix is ramping sports, podcasts, and kids gaming (e.g., the new Playground app) to capture daytime/mobile reach.

Netflix Stock Performance

NASDAQ:NFLX traded up $0.08 during midday trading on Thursday, hitting $107.79. The company’s stock had a trading volume of 62,146,504 shares, compared to its average volume of 47,539,887. The firm has a market cap of $455.11 billion, a P/E ratio of 42.66, a P/E/G ratio of 1.61 and a beta of 1.67. Netflix has a fifty-two week low of $75.01 and a fifty-two week high of $134.12. The firm’s 50 day moving average is $91.36 and its 200-day moving average is $98.65. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.19 and a quick ratio of 1.19.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q1 results beat expectations — Netflix posted stronger-than-expected revenue (~$12.25B) and EPS (~$1.23), driven by membership/pricing and ad growth; these results reinforce improved profitability trends. Netflix (NFLX) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: One‑time windfall and pricing power boosted profits — Coverage highlights a roughly $2.8B breakup fee from Warner Bros and recent U.S. price hikes as major contributors to the profit beat and higher margins. That cash/earnings boost improves near‑term free cash flow. Netflix shatters profit expectations thanks to price increase and $2.8 billion breakup fee from Warner Bros.
• Positive Sentiment: Ad business and price hikes seen as durable tailwinds — Analysts and coverage note Netflix is monetizing better via ad growth and subscription price increases, potentially creating a multi‑billion dollar uplift over time. Why Netflix is in a win-win position as it continues to hike prices
• Neutral Sentiment: Broader market backdrop was constructive — The market rally heading into the report provided a favorable environment, but macro strength didn’t offset company‑specific reaction to guidance and leadership news. Market Upswell Continues, Full Week in the Green In-Sight
• Negative Sentiment: Soft near‑term guidance hurt sentiment — Netflix issued Q2 EPS guidance below consensus ( ~0.78 vs ~0.84 ) and a cautious near‑term outlook, prompting investors to sell despite the quarter’s beat. Investors Don’t Like Netflix’s Latest Outlook—Or the News that Reed Hastings Is Moving On
• Negative Sentiment: Chairman Reed Hastings to leave board — Hastings won’t stand for re‑election when his term ends in June; investors view the timing of the leadership change as an additional risk during a strategic pivot toward ads and content. Netflix co-founder and chair Reed Hastings to leave board
• Negative Sentiment: After‑hours selloff and de‑risking — Despite the beat, headlines about soft guidance and the board exit triggered an after‑hours decline as traders de‑risked into uncertain near‑term visibility. Coverage documents the selloff and market reaction. Netflix stock falls after company reports earnings, announces Reed Hastings will step down as chairman

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on NFLX. UBS Group set a $104.00 target price on shares of Netflix in a research report on Tuesday, January 27th. Guggenheim restated a “buy” rating and set a $130.00 price target on shares of Netflix in a report on Tuesday. President Capital boosted their target price on shares of Netflix from $133.00 to $134.00 and gave the company a “buy” rating in a research note on Tuesday, March 31st. Morgan Stanley upped their price target on shares of Netflix from $110.00 to $115.00 and gave the company an “overweight” rating in a research note on Thursday, April 9th. Finally, Jefferies Financial Group reissued a “buy” rating on shares of Netflix in a report on Wednesday, April 8th. Two research 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 stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $115.80.

Insider Transactions at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 57,260 shares of the business’s stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $95.50, for a total value of $5,468,330.00. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $7,046,658.50. The trade was a 43.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider David A. Hyman sold 23,439 shares of the business’s stock in a transaction that occurred 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 position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 1,511,233 shares of company stock worth $138,320,982. Company insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Netflix

Hedge funds and other institutional investors have recently modified their holdings of the company. Imprint Wealth LLC acquired a new position in Netflix during the 3rd quarter worth $25,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Netflix in the fourth quarter valued at $26,000. Jessup Wealth Management Inc acquired a new position in shares of Netflix in the 4th quarter valued at $27,000. IFC & Insurance Marketing Inc. acquired a new position in shares of Netflix in the 4th quarter valued at $34,000. Finally, Wilkerson Advisory Group LLC acquired a new position in shares of Netflix in the 4th quarter valued at $34,000. 80.93% of the stock is owned by institutional investors and hedge funds.

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.