Netflix (NASDAQ:NFLX) Releases Earnings Results, Beats Expectations By $0.01 EPS

Netflix (NASDAQ:NFLX) announced its quarterly earnings data on Tuesday. The Internet television network reported $0.56 EPS for the quarter, beating the consensus estimate of $0.55 by $0.01, Zacks reports. Netflix had a net margin of 24.05% and a return on equity of 41.86%.

Netflix Price Performance

Shares of NFLX stock traded down $0.74 on Tuesday, reaching $87.26. The company’s stock had a trading volume of 97,721,367 shares, compared to its average volume of 45,350,895. The stock’s fifty day simple moving average is $98.48 and its 200-day simple moving average is $112.51. Netflix has a 1 year low of $82.11 and a 1 year high of $134.12. The company has a market capitalization of $369.75 billion, a price-to-earnings ratio of 36.45 and a beta of 1.71. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56.

Netflix News Summary

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

Wall Street Analyst Weigh In

Several brokerages have recently commented on NFLX. Hsbc Global Res upgraded Netflix to a “strong-buy” rating in a research report on Monday, January 12th. Seaport Res Ptn upgraded Netflix from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 6th. Barclays reissued a “neutral” rating and issued a $110.00 price target on shares of Netflix in a report on Friday, December 5th. Weiss Ratings restated a “buy (b-)” rating on shares of Netflix in a research note on Monday, December 29th. Finally, DZ Bank reaffirmed a “buy” rating on shares of Netflix in a report on Wednesday, December 17th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $127.13.

Insider Buying and Selling at Netflix

In related news, insider David A. Hyman sold 314,620 shares of the stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $109.98, for a total value of $34,603,166.08. Following the completion of the transaction, the insider owned 316,100 shares of the company’s stock, valued at approximately $34,765,942.40. This trade represents a 49.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Reed Hastings sold 426,290 shares of the business’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $91.67, for a total value of $39,078,004.30. Following the sale, the director directly owned 3,940 shares in the company, valued at $361,179.80. The trade was a 99.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,630,160 shares of company stock valued at $171,076,053 over the last ninety days. Corporate insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Netflix

Several hedge funds have recently added to or reduced their stakes in NFLX. Viking Global Investors LP purchased a new stake in Netflix in the 3rd quarter worth about $600,434,000. Worldquant Millennium Advisors LLC boosted its position in shares of Netflix by 146.1% during the second quarter. Worldquant Millennium Advisors LLC now owns 214,383 shares of the Internet television network’s stock valued at $287,087,000 after buying an additional 127,278 shares during the period. Daiwa Securities Group Inc. grew its stake in shares of Netflix by 18.3% during the third quarter. Daiwa Securities Group Inc. now owns 609,984 shares of the Internet television network’s stock valued at $731,321,000 after buying an additional 94,448 shares during the last quarter. Freestone Grove Partners LP purchased a new stake in shares of Netflix in the third quarter worth approximately $106,661,000. Finally, Alyeska Investment Group L.P. raised its holdings in shares of Netflix by 73.2% in the third quarter. Alyeska Investment Group L.P. now owns 147,373 shares of the Internet television network’s stock worth $176,688,000 after buying an additional 62,269 shares during the period. 80.93% of the stock is currently owned by institutional investors.

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.