Netflix Reports Earnings, Beats Revenue But Misses EPS Estimates

Netflix released its Q1 earnings report, with revenue beating expectations by $80 million but earnings per_share failing to meet projections. Analysts expect future growth despite subscriber backlash to price increases.

Netflix (NFLX) reported mixed Q1 2026 results: revenue of $12.25 billion exceeded analyst expectations by approximately $80 million, while earnings per share of $1.23 fell short of consensus estimates by $0.11 . The company's earlier withdrawal from a potential Warner Bros. Discovery acquisition boosted investor confidence, contributing to a 13.38% share price gain year-to-date heading into the print.

Wall Street's reaction remains broadly constructive, with 12 of 15 analysts maintaining buy ratings and an average price target of $118 implying approximately 11% upside from current levels . Revenue growth was supported by the company's continued international expansion, advertising-supported tier adoption, and investments in live event programming. Despite subscriber pushback against recent price increases in several markets, analysts view the company's multi-pronged revenue strategy as structurally sound.

The EPS miss, however, points to ongoing cost pressures from content spending and infrastructure investment. Netflix's earnings call is expected to provide clarity on subscriber trajectory, ad revenue ramp, and the company's pricing strategy in the face of competitive pressure from Disney+, HBO Max, and international streaming alternatives. Operating margin expansion remains the key metric investors will monitor in the quarters ahead .