:max_bytes(150000):strip_icc()/GettyImages-2237872190-18f83fd07f9541eba43399e0e972b6e6.jpg "Netflix is Set to Report Earnings Today. Hits Like ‘KPop Demon Hunters’ Likely Drove Strong Results")
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Key Takeaways
- Netflix is scheduled to report its quarterly results after the closing bell Tuesday.
- Wall Street analysts widely expect the streaming giant to have benefited from a strong slate of content and higher prices, along with its efforts to grow its advertising business.
Can Netflix keep up its recent momentum and maintain its reputation as a streaming winner?
The company’s third-quarter results, due after the bell today, could show whether its investments in original shows, charging higher prices, and efforts to grow its advertising business have paid off, with Wall Street analysts generally bullish that the stock still has room to rise.
Netflix (NFLX) is expected to post earnings per share of $6.92 on revenue of $11.52 billion, according to estimates compiled by Visible Alpha, with 10 of the 14 of the analysts with current ratings surveyed calling it a “buy,” compared to four “hold” ratings. Their average target of $1,400 would suggest 13% upside from Monday’s close.
That’s after what has already been a strong year for the stock so far. While well off its highs around $1,340 in June, Netflix stock has surged close to 40% in 2025, far outpacing the S&P 500’s roughly 15% gain. Shares were up slightly at $1,240 in mid-afternoon trading Tuesday.
Why This Matters to Investors
As a leader in the streaming space, Netflix’s results could set the tone for other companies with streaming businesses, such as Disney. Netflix, which has also benefited from the perception that it’s relatively insulated from tariffs, could also point to the resilience of consumer spending on entertainment in the face of broader economic uncertainty.
UBS analysts told clients earlier this month that they “continue to believe Netflix is a secular winner,” anticipating gains from growing memberships and higher pricing, along with a boost from hit new shows like “KPop Demon Hunters” and the return of its popular “Squid Game” series.
The analysts also voiced confidence in Netflix’s slate for the fourth quarter, with a lineup that includes “The Witcher” and “Stranger Things,” along with National Football League events as Netflix and other streamers such as Apple (AAPL) and Disney (DIS) lean into sports to drive growth.
Meanwhile, analysts at Morgan Stanley and Bank of America voiced some concerns about competitive threats from the rise of AI-generated content and a potential merger between Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD), but maintained “buy” or equivalent ratings on the shares. Bank of America said it expects Netflix’s scale to protect its streaming leadership in the “near to mid-term.”
“In our view, Netflix shares will be fueled by continued positive subscriber and earnings momentum in addition to evolving advertising and live opportunities,” Bank of America said.
