Netflix Financial Update
Netflix (NASDAQ: NFLX) announced a 10-for-1 stock split on October 30, 2022, but the stock has since dropped 13%, currently trading at $94. Analysts from Wall Street maintain a median price target of $115, suggesting a potential upside of 22%, with some forecasts as high as $135, indicating a 44% increase.
In the first quarter of 2026, Netflix reported a revenue increase of 16% to $12.2 billion but missed earnings expectations, reporting $1.23 per diluted share compared to Wall Street’s consensus of $0.76. This was primarily due to a one-time $2.8 billion termination fee from its Warner Bros. Discovery acquisition. Looking ahead, Netflix anticipates a revenue increase to $12.5 billion in Q2, representing a 13% rise.
As of 2025, Netflix has 325 million paid subscribers, covering less than 50% of addressable households with smart TVs. The company is projected to grow its earnings at an annual rate of 21% over the next three to five years, making current valuations attractive compared to its expected growth.
