Netflix Faces Price Target Cuts and Pessimistic Forecasts

Multiple price target cuts have been issued for Netflix, including a $120 PT cut by Oppenheimer and a $95 PT cut by Rosenblatt Securities. JPMorgan Chase & Co. has also expressed pessimistic expectations for the company's stock price but no specific target was mentioned. The cuts were triggered by the company's Q2 guidance falling short.

The sell-side community responded to NFLX's Q1 2026 earnings with a wave of price target reductions, underscoring investor disappointment with Q2 forward guidance despite a Q1 revenue beat. Oppenheimer cut its target to $120, Rosenblatt Securities lowered its to $95, and JPMorgan Chase adjusted its expectations downward, while Piper Sandler trimmed to $115. The selloff was triggered by Q2 revenue guidance of $12.57 billion — roughly $70 million below the $12.64 billion Wall Street had modeled.

The magnitude of the cuts reflects a recalibration of growth expectations rather than a fundamental concern about Netflix's business. Q1 revenue of $12.25 billion came in 16% above the year-ago quarter, and the company left its full-year guidance unchanged. The departure of co-founder Reed Hastings from the board in June added an additional sentiment headwind, even though Hastings had already stepped back from day-to-day operations in 2023.

For investors, the price target dispersion — from Rosenblatt's bearish $95 to more optimistic targets above $115 — reflects genuine uncertainty about how aggressively NFLX can grow its advertising-supported tier in a decelerating macro environment. With full-year guidance still intact, the near-term question is whether Q2's guidance miss is a conservative sandbagging move or the beginning of a growth deceleration cycle that justified the 9% after-hours decline.