Streaming giant Netflix (NFLX) is scheduled to announce its Q1 2026 results on April 16. With the company’s unsuccessful attempt to acquire assets of Warner Bros. Discovery (WBD) in the rearview mirror, the focus is on initiatives to boost revenue and enhance content amid intense competition. In fact, Jefferies analyst James Heaney expects the company to boost its full-year guidance. Let’s look at what’s driving the analyst’s optimism.
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Meanwhile, Wall Street expects Netflix to report earnings per share (EPS) of $0.76 for Q1 2026, reflecting 15% year-over-year growth. Revenue is estimated to rise 15.5% to $12.17 billion.
Jefferies Analyst’s Views Ahead of NFLX’s Q1 Earnings
Heaney reiterated a Buy rating on Netflix stock with a price target of $134. The 4-star analyst expects the company to raise its 2026 revenue and operating margin guidance, as recent price hikes start to show results.
He noted that sentiment is cautious ahead of Q1 earnings due to concerns about user engagement and the impact of AI, which could limit upside in the stock even if the company reports strong Q1 results.
The analyst thinks that post-print catalysts seem limited, though NFLX stock could rise if social media regulation tightens or management highlights improved pricing power, especially the faster price hikes in the U.S.
On Monday, Goldman Sachs analyst Eric Sheridan upgraded Netflix stock to Buy from Hold and raised his price target to $120 from $100. The analyst expects Netflix’s Q1 results to reflect a strong start to the year, driven by solid content, newer content initiatives, such as gaming, and the growing adoption of the digital ad offering by advertisers.
Is NFLX Stock a Buy, Sell, or Hold?
Heading into Q1 results, Wall Street has a Strong Buy consensus rating on Netflix stock based on 31 Buys and 10 Holds. The average NFLX stock price target of $114.61 indicates 16% upside potential. NFLX stock has risen 5% year-to-date.
