Streaming giant Netflix (NFLX) is set to report its second-quarter earnings on Thursday, July 17. The stock is up 41% year-to-date, driven by rising subscriber growth, ad-tier performance, and improving margins. For Q2, Wall Street expects EPS of $7.08, marking a strong 60% jump year-over-year, while revenue is projected to rise 16% to $11.06 billion. Meanwhile, TipRanks’ AI stock analysis has assigned an Outperform rating on Netflix stock with a price target of $1,462, reflecting a 16.01% upside potential.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Top Analyst Sees More Upside for NFLX Ahead of Q2 Print
Recently, several analysts maintained their Buy ratings on the stock and have raised their price targets for Netflix stock. Among them is BMO Capital Top analyst, Brian Pitz, who reiterated a Buy rating and increased his price target from $1,200 to $1,425 per share.
Pitz lifted his Q2 and second-half 2025 estimates based on record viewership for Squid Game Season 3. He noted that the hit show, along with improved FX trends and a strong slate of upcoming releases, should support higher revenue and profit in the near term.
Looking ahead, the five-star analyst believes Netflix’s ad-tier business can grow meaningfully. He pointed to more live events and better ad tools as key drivers. Pitz also expects new ad deals and a broader content strategy to fuel ad revenue growth over time.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 15.31% move in either direction.
Is NFLX Stock a Buy Right Now?
Turning to Wall Street, NFLX stock carries a Strong Buy consensus rating. Among the 37 analysts covering the stock, 27 have issued Buy recommendations, and 10 rate it as Hold. Moreover, the average Netflix stock price target of $1,320.94 implies a 4.81% upside potential from current levels.
