Netflix (NFLX) is heading into its Q1 2026 earnings report with a more positive view from Wall Street. Goldman Sachs analyst Eric Sheridan recently upgraded the stock to Buy from Neutral and raised the price target to $120 from $100, implying about 22% upside from current levels. The analyst sees a more favorable risk-reward setup for Netflix at current levels, supported by steady execution and expanding growth opportunities.
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The company is scheduled to report its financial results after market close on Thursday, April 16. The Street expects Netflix to report a nearly 15% year-over-year jump in earnings per share (EPS) to $0.76. Also, sales are projected to rise 17% to $12.17 billion.
Why Is Goldman Upbeat about Netflix?
Sheridan expects Netflix’s upcoming earnings to reflect a solid start to 2026, supported by steady execution across its key focus areas. These include original and new content driving user growth and engagement, along with expansion into newer segments such as live programming, gaming, and creator-led content.
He also highlighted progress in Netflix’s advertising business. Early checks suggest solid demand, supported by a growing number of users on ad-supported plans and ongoing improvements in ad delivery and targeting.
This is expected to help Netflix narrow the monetization gap with its ad-free plans and support stronger ad revenue growth over the next few years.
In addition, Sheridan pointed to Netflix’s capital strategy. With the $2.8 billion merger termination fee from Paramount Skydance (PSKY), the analyst believes Netflix is well-positioned to invest in content while also supporting shareholder returns over time.
Is Netflix a Good Stock to Buy Right Now?
On TipRanks, Netflix has a Moderate Buy consensus rating based on 31 Buys, nine Holds, and no Sell ratings. The average Netflix price target of $115.22 implies 16.79% upside potential from current levels.
