Netflix (NASDAQ:NFLX) Releases Q3 2026 Earnings Guidance

Netflix (NASDAQ:NFLX) updated its third quarter 2026 earnings guidance on Friday morning. The company provided earnings per share guidance of 0.820-0.820 for the period, compared to the consensus EPS estimate of 0.840. The company issued revenue guidance of $12.9 billion-$12.9 billion, compared to the consensus revenue estimate of $13.0 billion. Netflix also updated its FY 2026 guidance to EPS.

Analyst Ratings Changes

A number of analysts have weighed in on NFLX shares. Wedbush cut their price target on Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research note on Friday. Rosenblatt Securities set a $75.00 target price on Netflix and gave the stock a “neutral” rating in a research note on Friday. Citigroup reissued a “buy” rating and set a $100.00 price objective (down from $115.00) on shares of Netflix in a report on Thursday, July 9th. UBS Group dropped their target price on shares of Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Stephens initiated coverage on shares of Netflix in a research note on Friday. They issued an “overweight” rating for the company. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and sixteen have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $103.97.

Netflix Stock Performance

NASDAQ:NFLX opened at $68.95 on Friday. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. The firm has a market cap of $290.33 billion, a price-to-earnings ratio of 21.70, a price-to-earnings-growth ratio of 0.88 and a beta of 1.52. The firm’s fifty day moving average price is $80.15 and its 200 day moving average price is $86.90. Netflix has a 1-year low of $65.08 and a 1-year high of $126.71.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.83% and a net margin of 28.22%.The firm had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the previous year, the business earned $0.72 earnings per share. The company’s revenue for the quarter was up 13.4% compared to the same quarter last year. On average, sell-side analysts expect that Netflix will post 3.6 EPS for the current year.

Insider Transactions at Netflix

In other news, Director Reed Hastings sold 386,700 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $85.97, for a total value of $33,244,599.00. Following the completion of the transaction, the director owned 3,940 shares of the company’s stock, valued at $338,721.80. The trade was a 98.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradford L. Smith sold 35,990 shares of the business’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the transaction, the director owned 79,690 shares of the company’s stock, valued at $6,177,568.80. This trade represents a 31.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 899,839 shares of company stock worth $80,141,661 in the last quarter. Insiders own 1.24% of the company’s stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts remain bullish, arguing Netflix still has strong long-term upside from margin expansion, advertising growth, and new engagement-driven content formats. Mark Mahaney Reiterates Buy on Netflix
• Positive Sentiment: Supportive commentary highlighted Netflix’s AI, ads, short-form video, and gaming strategy as potential growth catalysts for monetization and engagement. Ad Engagement & Content Opportunities Offer Bullish Edge for NFLX
• Neutral Sentiment: Several analysts cut price targets but mostly kept buy/overweight or hold ratings, signaling lower near-term expectations rather than a full thesis break. Laura Martin Maintains Buy on Netflix
• Negative Sentiment: Netflix’s weaker Q3 outlook and reduced engagement disclosure sparked concern that growth is slowing and management is becoming less transparent with investors. Netflix third-quarter earnings forecast falls shy of Wall Street expectations
• Negative Sentiment: Coverage across the market emphasized the post-earnings selloff, citing a revenue miss, soft guidance, and investor worries about future growth and competition. U.S. Chip Stocks Extend Slide; Netflix Tumbles on Growth Warning

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Imprint Wealth LLC acquired a new position in shares of Netflix in the 3rd quarter valued at about $25,000. Atlas Capital Advisors Inc. acquired a new position in shares of Netflix during the 4th quarter valued at $26,000. Jessup Wealth Management Inc acquired a new stake in Netflix in the 4th quarter valued at $27,000. IFC & Insurance Marketing Inc. purchased a new position in Netflix in the fourth quarter valued at about $34,000. Finally, Wilkerson Advisory Group LLC acquired a new position in shares of Netflix during the fourth quarter worth about $34,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

About Netflix

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.