Netflix (NASDAQ:NFLX) is set to give its latest quarterly earnings report on Tuesday, 2025-10-21. Here's what investors need to know before the announcement.
Analysts estimate that Netflix will report an earnings per share (EPS) of $6.94.
Investors in Netflix are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Overview of Past Earnings
In the previous earnings release, the company beat EPS by $0.13, leading to a 5.1% drop in the share price the following trading session.
Here's a look at Netflix's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 7.06 | 5.72 | 4.20 | 5.12 |
| EPS Actual | 7.19 | 6.61 | 4.27 | 5.40 |
| Price Change % | -5.00 | 1.00 | 10.00 | 11.00 |
Market Performance of Netflix's Stock
Shares of Netflix were trading at $1199.36 as of October 17. Over the last 52-week period, shares are up 60.27%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Netflix
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Netflix.
The consensus rating for Netflix is Buy, derived from 5 analyst ratings. An average one-year price target of $1408.8 implies a potential 17.46% upside.
Understanding Analyst Ratings Among Peers
The below comparison of the analyst ratings and average 1-year price targets of Walt Disney, Spotify Technology and Warner Bros. Discovery, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Walt Disney, with an average 1-year price target of $134.38, suggesting a potential 88.8% downside.
- Analysts currently favor an Buy trajectory for Spotify Technology, with an average 1-year price target of $789.33, suggesting a potential 34.19% downside.
- Analysts currently favor an Neutral trajectory for Warner Bros. Discovery, with an average 1-year price target of $16.88, suggesting a potential 98.59% downside.
Comprehensive Peer Analysis Summary
The peer analysis summary presents essential metrics for Walt Disney, Spotify Technology and Warner Bros. Discovery, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Netflix | Buy | 15.90% | $5.75B | 12.76% |
| Walt Disney | Buy | 2.14% | $9.12B | 4.93% |
| Spotify Technology | Buy | 10.14% | $1.32B | -1.34% |
| Warner Bros. Discovery | Neutral | 1.02% | $3.85B | 4.52% |
Key Takeaway:
Netflix ranks highest in Revenue Growth among its peers, with a growth rate of 15.90%. In terms of Gross Profit, Netflix is at the top with $5.75B. However, its Return on Equity is lower compared to its peers. Overall, Netflix is positioned favorably compared to its peers in terms of financial performance.
Delving into Netflix's Background
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
Netflix's Economic Impact: An Analysis
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Over the 3 months period, Netflix showcased positive performance, achieving a revenue growth rate of 15.9% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 28.21%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Netflix's ROE stands out, surpassing industry averages. With an impressive ROE of 12.76%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Netflix's ROA stands out, surpassing industry averages. With an impressive ROA of 5.94%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.58.
To track all earnings releases for Netflix visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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