Analysts Share Mixed Remarks on Netflix Following Q4 2025 Earnings and Warner Bros. Discovery Deal

Netflix, Inc. (NASDAQ:NFLX) is one of the 15 Best S&P 500 Stocks to Look For in 2026.

Netflix, Inc. (NASDAQ:NFLX) reported its Q4 2025 earnings after the market close on January 20. While the Q4 results were strong, the 2026 guidance was seen as slightly softer than street expectations. There were downward price target revisions across almost all firms covering it, including Bernstein and Goldman Sachs, who lowered their targets by 8%-10%.

Going into the results, analysts had mixed feelings on the streaming giant following Paramount’s counteroffer of $108.40 billion for Warner Bros. Discovery, while Netflix already has a deal finalized at $82.70 billion. As per Reuters, Warner Bros.’s board rejected Paramount’s offer and favored Netflix’s bid due to stronger financing and lower debt risk. Paramount’s bid could have been a risky leveraged buyout, added the board members.

On January 16, TheFly reported that KeyBanc downgraded the price target on Netflix, Inc. (NASDAQ:NFLX) from $139 to $110, keeping its Overweight rating on the stock. KeyBanc analyst Justin Patterson lowered the price target on NFLX following uncertainty around the Warner Bros. Discovery deal and concerns about lapping 2025’s content slate, creating near-term overhangs on the P/E multiple, Patterson highlighted. However, the analyst expects 2026 guidance in line with revenue and potentially softer on operating margin. Patterson believes that this might create near-term volatility, but he still sees long-term monetization and margin catalysts as intact.

Netflix, Inc. (NASDAQ:NFLX) operates the world’s leading OTT platform and creates content such as movies, documentaries, and TV series across various genres and languages.

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Disclosure: None. This article is originally published at Insider Monkey.