Netflix, Inc. (NFLX) AI Stock Analysis

Netflix, Inc. is an entertainment services company founded in 1997 and headquartered in Los Gatos, California. The company provides TV series, documentaries, feature films, and mobile games across multiple genres and languages to approximately 231 million paid members in 190 countries. Members stream content through internet-connected devices, including televisions, digital video players, set-top boxes, and mobile devices. In addition to streaming licensed content, Netflix produces original series and films as part of its programming strategy.

Annual revenue increased from $29.70B in FY2021 to $45.18B in FY2025, registering a 5-year revenue CAGR of 12.6% from FY2020 to FY2025. Gross margin expanded from 41.6% in FY2021 to 48.5% in FY2025, while operating margin rose from 20.9% to 29.5%. Over that period, net income grew from $5.12B to $10.98B, driving diluted EPS from $1.13 to $2.53. In the trailing twelve months ending June 30, 2026, revenue totaled $48.37B with a profit margin of 28.2%. For the quarter ended June 30, 2026, quarterly revenue grew 13.4% year-over-year and quarterly earnings rose 11.1%.

As of June 30, 2026, Netflix held $9.13B in cash and short-term investments against total debt of $14.31B, resulting in net debt of $5.18B. Shareholders' equity was $30.15B, with a debt-to-equity ratio of 0.47 and a current ratio of 1.14. In FY2025, operating cash flow reached $10.15B and free cash flow was $9.46B after capital expenditures of $688.2M. The company directed $9.13B toward share buybacks in FY2025, contributing to a 5-year share count change of -6.5%.

Netflix carries a market cap of $293.68B and an enterprise value of $302.32B. Its trailing P/E of 22.2x sits above the median of its Nasdaq-100 Communication Services peers of 17.1x, while its forward P/E of 18.7x compares to the peer median of 21.9x. The stock trades at an EV/EBITDA of 8.6x versus the peer median of 14.9x, and a price-to-sales of 6.1x against the peer median of 8.6x. Over the 1-year period, the stock fell 40.4% compared to a 16.8% gain for the S&P 500 (SPY), and its 5-year return of 12.3% trails the S&P 500 return of 83.0%.

Wall Street analyst coverage includes 28 Strong Buy, 7 Buy, 15 Hold, 0 Sell, and 2 Strong Sell ratings. The mean price target is $91.39, representing an upside of 29.6% from the October 16, 2026 closing price of $70.53. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $51.21B and EPS of $3.58, indicating 41.6% EPS growth. Across 44 analysts covering the next fiscal year, projected revenue is $56.93B with EPS of $3.79. Netflix beat EPS estimates in 2 of the last 4 quarters, with its next earnings report scheduled for October 20, 2026.

This page is an AI-written research summary of Netflix, Inc. (NFLX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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