Netflix (NASDAQ: $NFLX) is expected to release its fourth quarter earnings on Tuesday, January 20, 2026, after markets close. Here are some of the expectations from that earnings report.
Netflix Q4 Expected Results
In Q3, Netflix met expectations, with revenue rising 17.2% YoY to $11.51 billion. However, it was a mixed quarter, with EPS exceeding forecasts, while EBITDA missed estimates. The company reported a 12.2% YoY rise in users globally to 317.2 million.
In Q4, Netflix is expected to grow revenue 16.8% YoY to $11.97 billion, in line with the 16% YoY increase reported last year. Adjusted EPS is expected to be $0.55. Analysts have reaffirmed their revenue forecasts over the last four weeks, signaling they expect no major shakeups. Over the past two years, Netflix has missed revenue estimates twice.
Market Performance
With Netflix being the first in its industry to report earnings, it could signal how the quarter will unravel for other stocks in the segment. The entire peer group is down 3.1% on average in the past month, while NFLX shares have declined 6.56% in the same period.
As of 2:13 PM in New York, NFLX shares were trading at $88.08 per share, a 0.08% increase compared to the opening price. Year to date, the stock is down 5.94%, and down 6.56% in the past month. Meanwhile, the share price has dipped 27.07% over the past six months. Over the past 12 months, the stock price has risen 2.78%.
Analysts forecast an average price target of $122.96, which is a 39.6% upside based on the current price of $88.08. Overall, analysts are confident about the future of NFLX shares, giving them an overall moderate buy rating. They forecast a wide range of prices, with a high of $152.50 and a low of $92.00.
Ongoing WB Buyout Talks
While Netflix is expected to deliver strong results on the back of the release of content like Stranger Things and Squid Games, investors are closely watching the Warner Bros Discovery buyout talks. The purchase would provide Netflix with access to new IP, allowing it to attract even more viewers.
However, the buyout is facingcompeting bids, and could take longer to conclude. Additionally, there are concerns that the Netflix business model might not marry well with the slow Warner Bros business model. Since Netflix announced its plans to buy WB on December 5, the stock price has dipped by around 15%.
Is Netflix A Buy Or Sell In 2026?
The current sentiment and market reaction signal that Netflix is potentially a great long-term buy. However, investors with short-term investment horizons should be aware of potential volatility in the short term. As such, adding NFLX shares to a long-term investment portfolio could potentially be a great move.
Click Here for Updates on NFLX – It’s 100% FREE to Sign Up for Text Message Notifications!
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment. Please read our Full Disclaimer: https://dexwirenews.com/disclaimer/
