Netflix (NFLX, Financial) is set to announce its first quarter 2025 financial outcomes and business projection on Thursday, April 17. A live discussion with company leaders, including co-CEOs Ted Sarandos and Greg Peters, is scheduled for 4:45 p.m. ET.
Significantly, this report will mark a shift in Netflix's reporting strategy as the company will no longer disclose quarterly subscriber totals, a metric that has been pivotal in gauging its growth. This change, which Netflix announced last year, emphasizes the company's focus on revenue, operating margin, and viewer engagement as the primary indicators of its performance. Previously, Netflix highlighted that it achieved its highest-ever quarterly increase in paid net additions, with nearly 19 million in the fourth quarter.
Starting with the second quarter of 2025, Netflix plans to release a bi-annual engagement report alongside its earnings, covering nearly all viewing activities on the platform. Analysts anticipate Netflix will add about 4.77 million subscribers in Q1, with expectations of adding 4.54 million in the second quarter, based on Bloomberg data.
LSEG Data and Analytics forecasts Netflix's revenue for the quarter ending in March to hit $10.5 billion, with adjusted earnings per share (EPS) at $5.66, slightly above the company's own targets of $10.42 billion in revenue and $5.58 EPS.
Since the last quarterly update, several Wall Street firms have expressed optimism regarding Netflix’s stock. Notable upgrades include Rosenblatt's shift to a Buy rating with an increased price target of $1,494 and Canaccord's Buy rating with a target of $1,150. Barclays moved its rating to Equal Weight, while Benchmark updated its stance to Hold.
Despite these positive outlooks, Phillip Securities took a more conservative approach, downgrading the stock to Reduce due to what it sees as valuation concerns, setting its price target at $870.
Looking forward, Netflix has ambitious goals, reportedly aiming for a $1 trillion market capitalization and a doubling of its revenue by 2030, showcasing its confidence in navigating economic and market challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 43 analysts, the average target price for Netflix Inc (NFLX, Financial) is $1,079.11 with a high estimate of $1,494.00 and a low estimate of $644.50. The average target implies an upside of 10.83% from the current price of $973.67. More detailed estimate data can be found on the Netflix Inc (NFLX) Forecast page.
Based on the consensus recommendation from 49 brokerage firms, Netflix Inc's (NFLX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Netflix Inc (NFLX, Financial) in one year is $630.16, suggesting a downside of 35.28% from the current price of $973.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Netflix Inc (NFLX) Summary page.
