NEW YORK, June 26, 2026, 12:01 EDT
- Netflix, Inc. (NASDAQ:NFLX) added around 5.9% to $75.10 in late-morning trading. Shares had touched a 20-month low on Thursday.
- FactSet has the average analyst price target at $115.82. The 2027 EPS estimate is nearly flat compared to three months earlier.
- The gap between Netflix’s price and analyst targets is around $175 billion, based on the company’s most recent fully diluted share count.
- The next thing to watch is if ads and July earnings help move the stock closer to where the Street expects.
Netflix, Inc. (NASDAQ:NFLX) was up $4.20 at $75.10 as of 11:46 a.m. in New York Friday, gaining 5.9% from Thursday’s close. A WSJ/FactSet screen showed the stock higher by 5.51% just minutes before, while the S&P 500 added 0.38%. The Media/Entertainment group was down 2.92%.
Day’s move wasn’t enough to erase the gap. FactSet numbers posted by WSJ showed analysts have an average price target of $115.82, median at $115.00, and the lowest target is $95.00. Consensus rating stayed at Overweight. There are no Sells or Underweights.
Investors looking at the numbers see the stock trading close to 20 times FactSet’s 2027 EPS estimate of $3.83. The average price target sits around 30 times that same estimate. The 2027 EPS forecast is pretty much unchanged from $3.82 three months back, even though shares have dropped a lot.
At Friday’s close of $75.10, the average target for the stock sits at $115.82. Netflix’s fully diluted share count is 4.298 billion. That leaves about $175 billion in equity value between the current price and the target. For investors, the slide in shares is coming from a cut in the multiple, not a big drop in earnings estimates.
2026 EPS estimates for Netflix are now at $3.56, up from $3.14 three months back. But Q1 EPS got a lift from a $2.8 billion termination fee connected to the Warner Bros. deal, Netflix said. So analysts look to the 2027 number and Q2 guidance instead to gauge the underlying business.
The stock is still off 43.5% from a year ago and down 20.3% for the year, MarketWatch data show. MarketWatch reported this week that investors have gotten cautious about Netflix’s growth and its reported appetite for deals, following a string of strong earnings numbers.
Netflix hit $70.86 on Thursday, the lowest in 20 months, according to Investor’s Business Daily. Wolfe Research’s Peter Supino kept his Outperform and $107 target, IBD reported. Supino said more slowing “looked priced in at $72” and “investors don’t need a lot to go right.” Investor’s Business Daily
Netflix stuck to its 2026 outlook, guiding for revenue between $50.7 billion and $51.7 billion and sticking with its 31.5% operating margin target. The company also said its ad revenue is still set to hit $3 billion in 2026, which would be around twice last year’s level.
The ad target remains below 6% of the 2026 revenue guide midpoint. Investors are being asked to pay a premium multiple before ads make up a big piece of sales.
Omnicom Group Inc. (NYSE:OMC) and Netflix said June 22 they are teaming up in the U.S. to link Acxiom audience data with Netflix’s AI-driven ad tech, and want to move into more markets before year-end. Omnicom Media’s chief product officer Megan Pagliuca said “relevance drives engagement.” Netflix ads product VP Jon Whitticom said the new product should “drive outcomes.” PR Newswire
FactSet now sees Q2 EPS at $0.79, down from $0.83 in its forecast from three months back. Netflix will post second-quarter results July 16.
