Part 2 of 5 > Earnings Calendar (13Apr26) - Is Netflix a buy?
Earnings Calendar (13Apr2026)
Banking Sector Earnings and Netflix Analysis
This week, earnings results for the banking sector will be announced.
Alongside these updates, Netflix stands out as one of the leading players in the market. Over the past year, Netflix’s stock price has risen by 12.17%. However, its price-to-earnings (P/E) ratio suggests the stock may be somewhat expensive at current levels.
Key Financial Metrics
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P/E Ratio: 40.47
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Earnings Per Share (EPS): $2.53
Investment Ratings and Target Price
Technical analysis recommends a “strong buy” for Netflix stock. Analyst sentiment is also positive, with a “buy” rating. The target price for Netflix is set at $114.3, indicating a potential upside of 10.7% from current levels.
Revenue and Profit Growth
Netflix has demonstrated robust financial growth in recent years. The company’s annual revenue increased from $29.6 billion in 2021 to $45.1 billion in 2025, marking an impressive growth of approximately 50% over five years.
The gross profit rose from $12.3 billion to $21.9 billion during this period. Operating income expanded from $6.1 billion to $13.3 billion, further highlighting the company’s strong performance.
Of particular note, net income grew from $5.1 billion in 2021 to $10.9 billion in 2025. This reflects effective cost management, as a 50% growth in revenue led to more than a 100% increase in net profit, underscoring the management’s accomplishment.
Balance Sheet Highlights
It is encouraging to see total debt decline from $18.1 billion in 2021 to $16.9 billion in 2025. Meanwhile, total assets increased from $44.5 billion to $55.5 billion by 2035. Total liabilities have remained stable, averaging around $28.7 billion over the past five years.
Free Cash Flow Improvements
Netflix’s free cash flow has shown significant growth, rising from $15.6 billion in 2021 to $24.8 billion in 2025. Over the same period, free cash flow in the UK improved from -0.05% to +2.37% in 2025.
Summary of Netflix Q1/2026 news
Netflix shifted to “execution mode” in Q1 2026, emphasising fewer but higher-impact productions. The company surpassed 325 million paid memberships and expects Q1 revenue of $12.16 billion with an EPS of $0.76. Advertising is now a primary growth driver, with ad revenue projected to double again after exceeding $1.5 billion in 2025. Netflix’s stock rebounded from a low of $75.01 to near $100.
After ending its acquisition talks with Warner Bros. Discovery due to unfavourable valuation, Netflix received a $2.8 billion termination fee, likely to be used for buybacks or content investment. Content volume dropped, particularly in original films (23 releases, an 8-year low), with major franchises like Bridgerton Season 4 and Stranger Things anchoring the lineup. Netflix also expanded into live programming and video podcasts to broaden engagement.
The news section is compiled using Gemini.
Netflix Earnings Outlook
For the upcoming earnings report, Netflix is expected to deliver earnings per share (EPS) of $0.794, with projected revenue reaching $12.18 billion. While the company continues to perform strongly, its current valuation prompts a cautious approach; therefore, I prefer to observe from the sidelines at this time rather than take action.
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