Netflix's fundamental outlook remains robust, driven by accelerating revenue growth (13.4% YoY in 2026Q2) and significant operating leverage, with operating margin expanding to 33.4% in 2026Q2 from 24.5% in 2025Q4.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 13.4% YoY in 2026Q2, with gross margin expanding to 51.9% and operating margin reaching 33.4%, though net income in 2026Q1 was inflated by a one-time tax benefit (net margin of 43.1%).
Netflix is expanding its global subscriber base and effectively monetizing through ad-supported tiers, with projections of reaching $3 billion in advertising revenue.
The company has a robust content pipeline for 2026, including major films and franchise returns, aimed at boosting subscriber growth.
Netflix is guiding for increased operating margins in 2026 and is expected to generate significant free cash flow.
The streaming market is highly competitive, with Disney+ and Amazon Prime posing significant threats to Netflix's market share.
Significant insider selling has raised concerns about the company's future prospects among insiders.
Concerns exist regarding the quality of Netflix's earnings, with some increases attributed to one-time fees rather than core operations.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 20, 2026 | $0.87+6.1% vs $0.82 | $12.9B+0.0% vs $12.9B |
Q3 2026 Jul 16, 2026 | $0.80+1.8% vs $0.79 | $12.6B-0.2% vs $12.6B |
Q2 2026 Apr 16, 2026 | $1.23+61.2% vs $0.76 | $12.3B+0.6% vs $12.2B |
Q1 2026 Jan 20, 2026 | $0.56+1.4% vs $0.55 | $12.1B+0.7% vs $12.0B |
The Nasdaq has fallen since September, but Alphabet, Amazon, and Netflix are benefiting from AI and everyday consumer behavior across searching, shopping, and streaming. Alphabet trades at about 18 times forward earnings after a 19% drop, with Search ad revenue up 12%.
Netflix, Inc. (NASDAQ: NFLX - Get Free Report) CEO Theodore Sarandos sold 27,312 shares of Netflix stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $66.20, for a total value of $1,808,054.40. Following the transaction, the chief executive officer directly owned 178,954 shares in the company,
Netflix is rated a BUY due to attractive valuation and strong financials despite revenue growth moderation. NFLX's core subscription growth is slowing, but new engines—advertising, live events, video games, and podcasts—offer long-term upside potential. Current market valuation overlooks NFLX's diversified monetization strategies; DCF and P/E analyses indicate 15–57% upside from current levels.
Netflix (NFLX) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Benchmark NFLX against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Netflix, Inc. (NFLX)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $63.41 | $264.04B | 25.06 | 15.85% | 24.3% | 42.76% | — | |
| $116.75 | $202.74B | 17.04 | 3.35% | 8.7% | 7.47% | 0.85% | |
| $30.95 | $77.6B | 106.72 | -5.15% | -8.77% | -8.91% | — | |
| $24.39 | $86.55B | 4.53 | -0.02% | 9.2% | 12.29% | 5.52% | |
| $259.30 | $2.79T | 36.16 | 12.38% | 16.9% | 26.71% | — | |
| $342.37 | $5.03T | 45.89 | 6.43% | 27.6% | 127.61% | 0.3% |
Netflix, Inc. (NFLX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Netflix, Inc. (NFLX) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 20, 2026·SEC
Jul 22, 2026·SEC
Jul 16, 2026·SEC
Jan 23, 2026·SEC
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Netflix, Inc. (NFLX) stock FAQ — growth, dividends, profitability & financials explained
Netflix, Inc. (NFLX) reported $49.73B in revenue over the trailing twelve months. Revenue was $45.18B in fiscal year 2025. That is 59420% more than the $75.9M of fiscal year 2001.
Netflix, Inc. (NFLX) grew revenue by 15.9% in fiscal year 2025, compared with the prior fiscal year.
Yes. Netflix, Inc. (NFLX) earned $14.77B in net income over the trailing twelve months (a 29.7% net margin).
Netflix, Inc. (NFLX) had a return on equity (ROE) of 42.8% in fiscal year 2025. That is well above the market's typical 10-15%.
Netflix, Inc. (NFLX) generated $11.22B in free cash flow over the trailing twelve months.
