Netflix (NASDAQ:NFLX) Updates Q1 2026 Earnings Guidance

Netflix (NASDAQ:NFLX) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.760-0.760 for the period, compared to the consensus earnings per share 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 NFLX opened at $87.26 on Wednesday. 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 company’s fifty day moving average price is $97.95 and its 200-day moving average price is $112.22. Netflix has a 1-year low of $82.11 and a 1-year high of $134.12. The firm has a market capitalization of $369.75 billion, a PE ratio of 36.45 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.01. The company had revenue of $12.05 billion for the quarter, compared to the consensus estimate of $11.97 billion. Netflix had a net margin of 24.05% and a return on equity of 41.86%. Netflix’s quarterly revenue was up 17.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $4.27 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, equities research analysts predict that Netflix will post 24.58 EPS for the current year.

Analysts Set New Price Targets

NFLX has been the topic of several research analyst reports. Needham & Company LLC reiterated a “buy” rating and issued a $150.00 target price on shares of Netflix in a research report on Tuesday, December 9th. Cfra Research cut Netflix from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Erste Group Bank cut Netflix from a “buy” rating to a “hold” rating in a report on Friday, October 31st. UBS Group set a $95.00 target price on Netflix in a research report on Wednesday. Finally, Guggenheim reiterated a “buy” rating and set a $145.00 price target on shares of Netflix in a research report on Wednesday, October 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $125.64.

Insider Buying and Selling at Netflix

In other news, CEO Gregory K. Peters sold 20,270 shares of the business’s stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $109.57, for a total transaction of $2,220,943.36. Following the transaction, the chief executive officer owned 127,810 shares of the company’s stock, valued at approximately $14,003,886.08. The trade was a 13.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Spencer Adam Neumann sold 23,600 shares of Netflix stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $109.76, for a total transaction of $2,590,241.60. Following the transaction, the chief financial officer directly owned 39,310 shares in the company, valued at $4,314,508.36. This trade represents a 37.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 1,653,599 shares of company stock worth $173,141,263. Corporate insiders own 1.37% of the company’s stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 beat and subscriber milestone — Netflix reported Q4 revenue and EPS slightly ahead of Street estimates and said paid memberships topped ~325M, showing the core streaming business still growing. Reuters: Netflix beats revenue estimates
• Positive Sentiment: Advertising momentum — Management said ad revenue topped roughly $1.5B in 2025, highlighting a material and growing non‑subscription revenue stream that supports longer‑term monetization. Deadline: Ad revenue update
• Neutral Sentiment: Warner Bros. deal amended to all‑cash — Netflix converted its WBD offer to an all‑cash structure (same headline price), which could speed shareholder approval and remove stock‑contingent risk — but it concentrates cash needs on Netflix. Reuters: All‑cash WBD offer
• Neutral Sentiment: Analysts largely maintain buy/overweight views but trim targets — Several firms reiterated Buy ratings while lowering price targets, signaling confidence in fundamentals but acknowledging near‑term uncertainty from the WBD bid and margin pressure. TipRanks: Analyst notes
• Negative Sentiment: Disappointing near‑term guidance — Q1 EPS guidance came in below consensus, which triggered the after‑hours selloff despite the beat; investors are focused on short‑term profitability. Proactive: Guidance reaction
• Negative Sentiment: Share buyback paused to fund WBD bid — Netflix halted repurchases to preserve cash for the acquisition, removing a shareholder-friendly capital return and increasing perceived execution/cash risk. TalkMarkets: Buyback pause
• Negative Sentiment: Higher content spending and margin pressure — Netflix plans to raise program spending ~10% in 2026, which could compress near‑term margins even as it targets long‑term growth. Financial Post: Content spend
• Negative Sentiment: Insider selling and broader risk‑off — Recent insider share sales were disclosed and tech weakness/risk‑off sentiment amplified selling pressure around the earnings/guidance news. SEC: Insider sale filing

Hedge Funds Weigh In On Netflix

Institutional investors have recently bought and sold shares of the company. Viking Global Investors LP bought a new position in Netflix during the third quarter valued at approximately $600,434,000. Worldquant Millennium Advisors LLC increased its stake in shares of Netflix by 146.1% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 214,383 shares of the Internet television network’s stock worth $287,087,000 after purchasing an additional 127,278 shares during the last quarter. Daiwa Securities Group Inc. raised its holdings in shares of Netflix by 18.3% during the 3rd quarter. Daiwa Securities Group Inc. now owns 609,984 shares of the Internet television network’s stock valued at $731,321,000 after purchasing an additional 94,448 shares in the last quarter. Freestone Grove Partners LP bought a new stake in Netflix in the third quarter worth $106,661,000. Finally, Alyeska Investment Group L.P. boosted its holdings in 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 purchasing an additional 62,269 shares in the last quarter. 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.