Netflix Inc (NASDAQ:NFLX) shares are trading lower on Wednesday after the company reported fourth-quarter financial results on Tuesday.
While the company beat analyst estimates for revenue and earnings per share, price targets are being lowered due to guidance and the near-term outlook.
• Netflix stock is feeling bearish pressure. Why is NFLX stock falling?
The Netflix Analysts
Goldman Sachs analyst Eric Sheridan maintained a Neutral rating on Netflix and lowered the price target from $112 to $100.
Rosenblatt analyst Barton Crockett maintained a Neutral rating and lowered the price target from $105 to $94.
Canaccord Genuity analyst Maria Ripps maintained a Buy rating and lowered the price target from $152.50 to $125.
JPMorgan analyst Doug Anmuth has no rating or price target. The firm previously withdrew coverage due to JPMorgan Securities LLC being a financial advisor to Warner Bros.
KeyBanc analyst Justin Patterson maintained an Overweight rating and lowered the price target from $110 to $108.
Wedbush analyst Alicia Reese reiterated an Outperform rating with a price target of $115.
Goldman Sachs on Netflix
A strong fourth-quarter report may be overshadowed by the "overhang" from the acquisition of Warner Bros. Discovery (NASDAQ:WBD), Sheridan said in a new investor note.
"Netflix reported a solid Q4'25 earnings report driven by above guided total revenue, operating income and strong free cash flow generation," Sheridan said.
The analyst highlighted the strength of engagement for the company's original content and advertising revenue, hitting $1.5 billion for the full fiscal year.
Negatives from the earnings report for the analyst include acquisition-related expenses, higher opex growth and share buybacks being paused to help fund the acquisition.
Rosenblatt on Netflix
Crockett said Netflix had an "ok quarter," but is concerned about the company's outlook.
The analyst said the disclosed 325 million subscribers were lower than his estimate of 329 million.
"The guidance was a tad light," Crockett said.
The analyst's price target does not include Netflix acquiring Warner Bros., with Crockett believing that Paramount Skydance (NASDAQ:PSKY) will bid higher and be successful in its own attempt to acquire the company.
Canaccord Genuity on Netflix
Netflix's fourth-quarter results were "solid," Ripps said in a new investor note.
The analyst highlighted healthy revenue growth and the advertising business scaling during the fiscal year.
"Netflix's leadership in original content, as well as investments in licensed content and emerging genres, should continue to support durable engagement and healthy revenue growth," Ripps said.
The analyst said the recent decline in Netflix stock creates "an attractive entry point" for investors, with the company showing strong engagement and advertising momentum.
JPMorgan on Netflix
After withdrawing coverage on the stock, Anmuth shared his "facts only takeaways" from Netflix's fourth quarter earnings.
"Ad revenue increased more than 2.5x in 2025 to $1.5B+ and NFLX expects it to double in 2026, driven by improvements across measurement, targeting, ad solutions and go-to-market/sales," Anmuth said.
KeyBanc on Netflix
Fourth-quarter results and guidance were better than expected, Patterson said in a new investor note.
"However, we believe nuances around engagement, incremental investment, and uncertainty on Warner are likely to weigh on the stock near term," Patterson said.
The analyst said Netflix's viewership growth likely disappointed investors, given the strong second-half 2025 content lineup. Patterson highlighted that Netflix's originals saw 9% year-over-year viewership gains, while licensed content lagged.
Netflix's acquisition of Warner Bros. could be a near-term overhang, the analyst added.
Patterson predicts that Netflix can return to low double-digit growth annually in fiscal 2027.
"Are we getting close to a bottom? We believe so."
Wedbush on Netflix
The long-term outlook for Netflix outweighs near-term weakness, Reese said in a new investor note.
"Shares are again under pressure after a second underwhelming quarter, as investors have become accustomed to phenomenal results," Reese said.
The analyst said Netflix is working towards "substantial growth" in its advertising business, which should not be overlooked.
Reese said results should improve for Netflix in 2026 and shares could go higher, especially in the back half of 2026.
"We remain positive on Netflix's overall opportunity to expand advertising in 2026."
Netflix Stock Price
Netflix stock is down 4.7% to $83.18 on Wednesday, with shares hitting new 52-week lows of $81.93 during the intraday trading session. Netflix shares are down 4.3% over the last 52 weeks.
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