Los Gatos, California-based Netflix, Inc. (NFLX) provides entertainment services worldwide, offering television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. Valued at a market cap of $292.7 billion, the company will report its Q3 2026 earnings after the market closes on Tuesday, October 20.
Ahead of the event, analysts expect the company’s EPS to be $0.82 on a diluted basis, up 39% from $0.59 in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in two of its last four quarters, while missing on two other occasions.
For fiscal 2026, analysts project the company’s EPS to be $3.59, up 41.9% from $2.53 in fiscal 2025. Moreover, its EPS is expected to rise by roughly 6.7% year over year (YoY) to $3.83 in fiscal 2027.
NFLX’s stock has tanked 41.6% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 15.2% rise and the State Street Communication Services Select Sector SPDR ETF’s (XLC) 6.1% fall during the same time frame.
On Sept. 18, NFLX stock fell nearly 5% following a rating downgrade of the stock by Wells Fargo. Steven Cahall, an analyst from Wells Fargo, downgraded the stock from “Equal Weight” to “Underweight” and lowered his price target to $57 from $80. The analyst cited user engagement trends and a weak second-half 2026 original-content slate as primary reasons for the downgrade. Additionally, the firm anticipated a 21% year-over-year decline in viewing hours for the company, along with slow margin expansion and other headwinds for long-term profit growth.
Analysts are somewhat bullish on NFLX, with the stock having a “Moderate Buy” rating overall. Among the 49 analysts covering the stock, 32 are recommending a “Strong Buy,” four suggest a “Moderate Buy,” 12 suggest a “Hold,” and one suggests a “Strong Sell” for the stock. NFLX’s average analyst price target is $94.77, indicating an upside of 35.9% from the current levels.
