plans to boost revenue by raising engagement, cutting churn, and expanding entertainment offerings, with gaming and ad growth as potential 2025 drivers. Analysts now forecast $45.1 billion in revenue, $13.6 billion in operating profit in full year 2025, and a 30.3% margin (up from 29.6%).
Key Highlights
- Netflix shows strong financials: a perfect Piotroski score of 9, 15% YoY revenue growth in Q2 2025, and raised full-year guidance to $44.8–$45.2B with 30% operating margins. International subscriber growth is healthy, fueling revenue gains and future expansion.
- The ad-supported tier reaches 94M monthly viewers; ad revenue is forecast to double in 2025 to $1.3B. A new partnership with Amazon Ads will give Amazon DSP access to Netflix inventory across 11 countries from Q4 2025, potentially accelerating ad growth.
- The company’s content momentum remains strong—hits like Squid Game and upcoming releases (Wednesday, Stranger Things)—while it expands into gaming through partnerships such as Grand Theft Auto and .
- Netflix trades at a premium (P/E 45.34), leaving little margin for execution errors or missed growth. Intense competition from other streamers and traditional media threatens subscriber growth and could raise content costs.
Analysts Expectation
- Bernstein SocGen reaffirmed an Outperform rating and $1,390 target on Netflix Valued at over $509B, Netflix holds a “GREAT” financial health score from InvestingPro.
- UBS reaffirmed its Buy rating and $1,495 target on Netflix, forecasting Q3 revenue up 17% and operating income up 25%, in line with management guidance.
- BMO Capital reaffirmed an outperform rating and $1,425 target, citing strong viewership and upcoming content.
Q3 2025 earnings after-market (4:01 pm ET) Tuesday October 21, 2025
Technical Analysis Perspective
- NFLX has trended upward since June 2022, making higher highs and lows.
- In early July 2025 the stock broke below the rising trendline from the April 2025 low of 821.
- It is now consolidating the April–June ’25 gain (821 – 1341).
- Price is trading in a rectangle between roughly 1,280 and 1,135.
- NFLX will likely remain in this range after today’s earnings.
- A breakout above or below the range should determine the next directional move.
Weekly Candlestick Chart
NFLX Seasonality Chart
Since 2006, NFLX has seen October close with a 7% gain in 75% of years and November with a 2% gain in 56% of years.
****
InvestingPro provides a comprehensive suite of tools designed to help investors make informed decisions in any market environment. These include:
- AI-managed stock market strategies re-evaluated monthly.
- 10 years of historical financial data for thousands of global stocks.
- A database of investor, billionaire, and hedge fund positions.
- And many other tools that help tens of thousands of investors outperform the market every day!
Not a Pro member yet? Check out our plans here.
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.