Netflix (NFLX)
NASDAQ:NFLX
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Netflix
(NASDAQ:NFLX)
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Rating:72Outperform
Price Target:
$91.00
▼(-6.48% Downside)
Action:Reiterated
Date:06/06/26
The score is driven primarily by strong financial performance (expanded margins, robust free cash flow, and improving leverage) and a constructive earnings-call outlook with maintained 2026 guidance and accelerating ads momentum. These positives are tempered by weak technicals (bearish trend and negative MACD despite oversold readings) and a valuation that is not clearly cheap at ~25.75x earnings with no dividend yield provided.
Positive Factors
Strong free cash flow
Sustained high free cash flow (~$11.9B TTM) and strong cash conversion (FCF ≈93% of net income) provide durable financial flexibility. This funds content investment, buybacks, and strategic M&A without heavy reliance on new debt, reducing refinancing risk over the medium term.
Negative Factors
Meaningful absolute debt
Although leverage has declined, a ~$14.4B debt stock remains material. Persistent indebtedness can constrain capital allocation, elevate interest and refinancing exposure in adverse markets, and limit agility for large content bets or M&A if cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained high free cash flow (~$11.9B TTM) and strong cash conversion (FCF ≈93% of net income) provide durable financial flexibility. This funds content investment, buybacks, and strategic M&A without heavy reliance on new debt, reducing refinancing risk over the medium term.
Read all positive factors
Netflix Key Performance Indicators (KPIs)
Any
Total Paid Memberships
Shows the total number of paying subscribers, indicating Netflix's market reach, revenue potential, and overall popularity among consumers.
Shows the total number of paying subscribers, indicating Netflix's market reach, revenue potential, and overall popularity among consumers.
Data provided by:
The Fly
The FlyNetflix (NFLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$338.30B
Dividend YieldN/A
Average Volume (3M)34.42M
Price to Earnings (P/E)25.4
Beta (1Y)0.95
Revenue Growth18.57%
EPS Growth45.93%
CountryUS
Employees14,000
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)3.16
Shares Outstanding4,210,798,300
10 Day Avg. Volume36,749,840
30 Day Avg. Volume34,418,672
Financial Highlights & Ratios
PEG Ratio1.33
Price to Book (P/B)14.90
Price to Sales (P/S)8.78
P/FCF Ratio41.91
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue7.83
Enterprise Value/Gross Profit15.98
Enterprise Value/Ebitda10.78
Forecast
1Y Price Target
$115.10Price Target Upside18.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering32
EPS Forecast (FY)3.56
Revenue Forecast (FY)$51.40B
Netflix Business Overview & Revenue Model
Company Description
Netflix, Inc. serves as a worldwide entertainment provider. Its comprehensive library features television series, motion pictures, documentaries, and mobile games, spanning numerous genres and languages. Members can effortlessly stream this conten...
How the Company Makes Money
Netflix primarily makes money by selling paid streaming subscriptions. Revenue is recognized over time as subscribers receive access to the service, and pricing varies by plan tier and geography. The company’s key revenue stream is monthly members...
Netflix Earnings Call Summary
Earnings Call Date:Apr 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and strategic picture: management maintained 2026 guidance (12%–14% revenue growth; 31.5% operating margin), reported record member-quality metrics, strong ad-sales momentum (advertiser base +70% YoY; programmatic >50%), and notable regional wins (WBC success and APAC strength). The principal negatives were timing and expense uncertainty from the Warner Brothers transaction, perception risks from Nielsen methodological changes, limited early acquisition benefits from gaming, and the usual competitive pressures for premium content. Overall, the positives materially outweigh the lowlights.Positive Updates
Maintained Full-Year Financial Guidance
Company reiterated 2026 guidance: revenue growth of 12%–14% and operating margin of 31.5%. Advertising business expected to roughly double to about $3.0 billion.
Negative Updates
Warner Brothers Deal Costs and M&A Expense Timing
Company walked away from the Warner Brothers transaction. Initial 2026 guidance included ~$275 million of M&A-related costs; some costs tied to the Warner Brothers process were pulled into 2026 (though management said there is no material impact on the operating margin outlook), creating near-term expense timing uncertainty.
Read all updates
Q1-2026 Updates
Positive
Negative
Maintained Full-Year Financial Guidance
Company reiterated 2026 guidance: revenue growth of 12%–14% and operating margin of 31.5%. Advertising business expected to roughly double to about $3.0 billion.
Read all positive updates
Company Guidance
Netflix said it is maintaining its 2026 guidance: full‑year revenue growth of 12–14% and an operating margin of 31.5%, while expecting to roughly double advertising to about $3.0 billion this year; the company finished 2025 with more than 325 million paid members, reports Q1 view hours growing at a rate similar to 2025 and a primary member‑quality metric at an all‑time high, and noted improved retention across all regions. Management described an addressable smart‑TV household opportunity of roughly 800 million (under 45% penetrated), about $670 billion of addressable revenue today (of which Netflix has captured ~7%), and only ~5% of global TV view share. Other datapoints noted: a $275 million M&A‑related cost carried in the year (including Interpositive), the World Baseball Classic drew 31.4 million viewers in Japan, the advertiser base grew >70% year‑over‑year to >4,000 advertisers with programmatic on track to exceed 50% of non‑live ads, an ads entry plan at $8.99 in the U.S., and a games market opportunity of roughly $150 billion (ex‑China/ex‑Russia); management said the Warner‑related timing shifts leave no material impact to the margin guide.Netflix Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
77
Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.89B | 45.18B | 39.00B | 33.72B | 31.62B | 29.70B |
| Gross Profit | 22.99B | 21.91B | 17.96B | 14.01B | 12.45B | 12.37B |
| EBITDA | 34.08B | 30.25B | 26.31B | 21.51B | 20.33B | 19.04B |
| Net Income | 13.37B | 10.98B | 8.71B | 5.41B | 4.49B | 5.12B |
Balance Sheet | ||||||
| Total Assets | 61.02B | 55.60B | 53.63B | 48.73B | 48.59B | 44.58B |
| Cash, Cash Equivalents and Short-Term Investments | 12.30B | 9.06B | 9.58B | 7.14B | 6.06B | 6.03B |
| Total Debt | 16.74B | 14.46B | 17.99B | 16.97B | 14.35B | 18.12B |
| Total Liabilities | 29.89B | 28.98B | 28.89B | 28.14B | 27.82B | 28.74B |
| Stockholders Equity | 31.13B | 26.62B | 24.74B | 20.59B | 20.78B | 15.85B |
Cash Flow | ||||||
| Free Cash Flow | 11.89B | 9.46B | 6.92B | 6.93B | 1.62B | -131.97M |
| Operating Cash Flow | 12.65B | 10.15B | 7.36B | 7.27B | 2.03B | 392.61M |
| Investing Cash Flow | -225.85M | 1.04B | -2.18B | 541.75M | -2.08B | -1.34B |
| Financing Cash Flow | -7.55B | -10.35B | -4.07B | -5.95B | -664.25M | -1.15B |
Netflix Technical Analysis
Negative
97.31
Price Trends
90.85
Negative
89.38
Negative
99.21
Negative
Market Momentum
-2.56
Positive
29.05
Positive
16.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NFLX, the sentiment is Negative. The current price of 97.31 is above the 20-day moving average (MA) of 85.08, above the 50-day MA of 90.85, and below the 200-day MA of 99.21, indicating a bearish trend. The MACD of -2.56 indicates Positive momentum. The RSI at 29.05 is Positive, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NFLX.
Netflix Risk Analysis
Netflix disclosed 23 risk factors in its most recent earnings report. Netflix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Netflix Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $26.14B | 14.60 | 14.86% | 0.75% | 0.60% | -5.58% | |
75 Outperform | $173.72B | 15.74 | 10.29% | 1.10% | 4.02% | 27.66% | |
72 Outperform | $338.30B | 25.37 | 49.24% | ― | 18.57% | 45.93% | |
72 Outperform | $21.20B | 105.17 | 7.64% | ― | 16.78% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $67.64B | -38.73 | -4.94% | ― | -2.78% | 84.26% | |
53 Neutral | $11.72B | ― | -4.64% | 1.48% | 1.14% | 93.73% |
* Communication Services Sector Average
NFLX
Netflix
80.34
-42.19
-34.43%
PSKY
Paramount Skydance
10.47
-1.38
-11.65%
DIS
Walt Disney
100.04
-18.13
-15.34%
ROKU
Roku
143.66
61.49
74.83%
FOXA
Fox
65.85
11.05
20.17%
WBD
Warner Bros
26.98
16.22
150.74%
Netflix Corporate Events
Executive/Board ChangesShareholder Meetings
Netflix Shareholders Approve 2026 Proposals, New Board Chair
Positive
Jun 5, 2026
On June 4, 2026, Netflix held its 2026 annual meeting of stockholders, where a quorum was achieved with roughly 3.6 billion shares represented out of 4.21 billion eligible to vote. Shareholders elected all nominated directors to serve until the 20...
Business Operations and StrategyStock Buyback
Netflix Boosts Capital Returns With New Buyback Authorization
Positive
Apr 23, 2026
On April 22, 2026, Netflix’s board approved a new $25 billion share repurchase authorization, supplementing its existing December 2024 program, which still had about $6.8 billion available as of March 31, 2026. The buybacks, which have no ex...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Netflix Reports Strong Q1 Growth Amid Leadership Transition
Positive
Apr 16, 2026
On April 10, 2026, Netflix co-founder Reed Hastings notified the company that he will not stand for re-election as a director at the 2026 annual meeting of stockholders, and he will remain a director and Chairman of the Board until his term expire...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.