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. The company's asset-light model and strong fr...
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 10/11/2026, 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) |
|---|---|---|
Q3 2026Latest Jul 16, 2026 | $0.80+1.3% vs $0.79 | $12.6B-0.2% vs $12.6B |
Q2 2026 Apr 16, 2026 | $0.80+1.8% vs $0.79 | $12.6B+3.1% vs $12.2B |
Q1 2026 Jan 20, 2026 | $0.56+1.4% vs $0.55 | $12.1B+0.7% vs $12.0B |
Q4 2025 Oct 21, 2025 | $0.59-15.2% vs $0.70 | $11.5B+0.0% vs $11.5B |
Disney agreed to license a slate of movies and TV shows to Netflix , including existing "Ice Age" films as well as "Percy Jackson and the Olympians" and "Will Trent" series, the companies said on Friday.
Netflix Inc. (NASDAQ:NFLX) is leaning on live programming, advertising and its global subscriber scale to revive growth as investors weigh weaker engagement, a lack of breakout hits and intensifying competition from Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) YouTube and other streaming platforms.
Netflix investors have had little to celebrate in recent weeks. Shares of the streaming giant fell 14% in September, according to S&P Global Market Intelligence, extending a broader decline that has taken the stock down about 18% over the past month and 25% this year.
Netflix's price-to-earnings ratio has declined by 40% since the start of 2026, pressuring the stock price. Investors must accept the fact that this company's best days might be in the past.
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 |
|---|---|---|---|---|---|---|---|
| $70.30 | $292.72B | 27.79 | 15.85% | 24.3% | 42.76% | — | |
| $108.05 | $187.63B | 15.77 | 3.35% | 8.7% | 7.47% | — | |
| $30.95 | $77.6B | 106.72 | -5.15% | -8.77% | -8.91% | — | |
| $20.66 | $73.31B | 3.83 | -0.02% | 8.97% | 12% | — | |
| $262.43 | $2.82T | 36.60 | 12.38% | 17.44% | 30.5% | — | |
| $336.64 | $4.94T | 45.13 | 6.43% | 27.62% | 137.18% | — |
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)
Jul 22, 2026·SEC
Jul 16, 2026·SEC
Jun 5, 2026·SEC
Jan 23, 2026·SEC
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Netflix, Inc. (NFLX) stock FAQ — growth, dividends, profitability & financials explained
Netflix, Inc. (NFLX) reported $48.37B in revenue for fiscal year 2025. This represents a 63620% increase from $75.9M in 2001.
Netflix, Inc. (NFLX) grew revenue by 15.9% over the past year. This is strong growth.
Yes, Netflix, Inc. (NFLX) is profitable, generating $13.65B in net income for fiscal year 2025 (24.3% net margin).
Netflix, Inc. (NFLX) has a return on equity (ROE) of 42.8%. This is excellent, indicating efficient use of shareholder capital.
Netflix, Inc. (NFLX) generated $10.99B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
