Netflix (NASDAQ:NFLX) Issues Quarterly Earnings Results

Netflix (NASDAQ:NFLX) issued its earnings results on Thursday. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01, FiscalAI reports. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the prior year, the firm earned $0.72 earnings per share. Netflix’s revenue for the quarter was up 13.4% on a year-over-year basis.

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

• Netflix said it is tracking to its 2026 financial plan, guiding to 13%-14% full-year revenue growth and citing healthy membership acquisition, retention, pricing, and ads trends.
• Management emphasized that engagement quality matters more than raw hours, pointing to live events, content variety, and quality as drivers of acquisition, retention, and ad monetization. They said view hours still grew 2% in the first half of 2026.
• The company highlighted a strong content slate, including hits like “I Will Find You,” “Swapped,” “Teach You a Lesson,” and regional titles such as “The Polygamist” and “Rosario Tijeras,” while noting disciplined content spending growth of about 10% this year.
• Netflix said its ad tier monetization is improving as the gap versus the standard plan narrows, helped by more demand sources, better ad tech, additional ad products, and improved measurement and fill rates.
• Management reiterated a strong innovation pipeline in live events, video podcasts, games, and GenAI tools, saying these initiatives are showing early traction and can expand engagement, improve production efficiency, and support future growth.

Netflix Stock Up 0.9%

NFLX opened at $74.35 on Friday. The stock has a market capitalization of $313.07 billion, a price-to-earnings ratio of 24.01, a PEG ratio of 0.94 and a beta of 1.52. The firm has a 50 day moving average price of $80.52 and a 200-day moving average price of $87.03. Netflix has a twelve month low of $70.86 and a twelve month high of $127.75. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43.

Insider Transactions at Netflix

In related news, Director Bradford L. Smith sold 35,990 shares of the firm’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director directly owned 79,690 shares of the company’s stock, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 407,550 shares of the firm’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the transaction, the director directly owned 3,940 shares in the company, valued at $366,932.20. This trade represents a 99.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 899,839 shares of company stock worth $80,141,661. Company insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. State Street Corp grew its stake in Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Netflix by 685.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network’s stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares in the last quarter. Morgan Stanley boosted its holdings in shares of Netflix by 903.0% during the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock valued at $8,002,414,000 after purchasing an additional 76,840,318 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of Netflix by 900.3% during the 4th quarter. Bank of America Corp DE now owns 55,566,463 shares of the Internet television network’s stock valued at $5,209,912,000 after purchasing an additional 50,011,603 shares during the last quarter. Finally, Northern Trust Corp grew its position in shares of Netflix by 883.1% during the fourth quarter. Northern Trust Corp now owns 43,445,226 shares of the Internet television network’s stock valued at $4,073,424,000 after purchasing an additional 39,026,066 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

NFLX has been the topic of a number of research analyst reports. Barclays restated a “reduce” rating on shares of Netflix in a report on Thursday. UBS Group set a $100.00 price objective on Netflix in a research report on Monday. Pivotal Research set a $96.00 target price on Netflix and gave the company a “hold” rating in a research note on Friday, April 17th. TD Cowen reaffirmed a “buy” rating on shares of Netflix in a research note on Thursday, May 14th. Finally, Erste Group Bank downgraded shares of Netflix from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $110.53.

More Netflix News

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

Netflix Company Profile

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.