Netflix (NFLX) reports third-quarter results after the bell on Tuesday, with the stock down more than 25% this year and closing Friday near $70, versus $93.76 at the end of 2025. Investors are worried about slowing viewership, competition from YouTube, and live sports moving to Amazon Prime Video and HBO Max. Last week Netflix cut about 6% of its workforce (roughly 1,000 employees) and named Peter Rice its new chief content officer, and five firms lowered price targets in October. Analysts expect EPS of $0.82 on revenue of $12.88 billion, up about 12% from a year earlier, in line with Netflix's own forecast. KeyBanc's Justin Patterson wants more content investment, product changes, expense cuts and a possible first-ever dividend.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Netflixearningsstreamingdividends
Open a keyword to see other news on the same topic.
Related news
- Netflix stock is down roughly 25% in 2026 as Q3 earnings loom
Netflix shares are down more than 25% this year ahead of third-quarter results after the bell on Tuesday, closing Friday near $70 versus $93.76 at the end of 2025, amid concerns about waning viewership, YouTube's dominance in watch time and more live sports moving to rival services. Last week Netflix cut 6% of its workforce, about 1,000 employees, its largest reduction since 2022, and named former Disney executive Peter Rice as chief content officer, replacing Bela Bajaria. Analysts expect EPS of $0.82 and revenue of $12.88 billion, up about 12% from a year earlier and in line with the company's own forecast, and five firms cut price targets in October. KeyBanc wants more content investment, product changes, expense cuts and a possible dividend, while Yahoo Finance's Brian Sozzi urged management not to 'read off the script' on the call.
- I've Covered Netflix for 24 Years. Here's Whether the Stock Is Overvalued Right Now.
The author, who has followed Netflix (NFLX) for 24 years, notes the stock has fallen more than 40% over the past year after a long run of gains. Netflix's trailing revenue is now over $48 billion at a record net margin, compared with $153 million in revenue when it went public in 2002. The stock trades at under 20 times this year's projected earnings, under 19 times next year's and 15 times the year after, and guidance calls for 11.7% third-quarter revenue growth. The author argues the valuation looks compelling for a premium business with pricing flexibility and that the current pullback is milder than the 2011 Qwikster and 2022 sell-offs. Results are due after the market closes on Wednesday, which could change the valuation math.
- What Has The Market Missed In Netflix Stock's Drop?
Netflix (NFLX) shares have fallen 41.4% over the past twelve months, while the S&P 500 returned 16.2%, even as management plans for content spending to grow more slowly than sales. Management guided to full-year 2026 sales growth of 13% to 14% and expects content expense to rise about 10%. The operating margin reached 29.7% over the twelve months to June 2026, though most of the gain came by June 2025. Reuters reported on July 16, 2026 that the 12% revenue growth forecast for fiscal Q3 fell short of Wall Street targets, down from 13.4% in fiscal Q2. Operating profit rose about 17% to $14.4 billion over the twelve months to June 2026, slightly faster than revenue growth of 16.0%.
- Can Ad-Supported Streaming Momentum Boost Netflix's Q3 Results?
Netflix is scheduled to report third-quarter 2026 results on Oct. 20, with guidance for revenue of $12.86 billion (about 12% growth) and adjusted EPS of 82 cents. Advertising is expected to be the key growth driver, as the company targets roughly $3 billion in 2026 ad revenue, about double the 2025 level. Operating margin is projected at 33.2%, up from 28.2% a year earlier. However, live programming accounts for about 5% of content spend but only about 1% of view hours, and first-half view hours grew just 2%. The full-year outlook calls for revenue of $51–$51.4 billion and a 31.5% operating margin, though currency volatility and content timing remain risks.
- Netflix Stock Has Gained in the Fourth Quarter in 17 of the Last 24 Years
Netflix shares ended the fourth quarter higher in 17 of the past 24 years, with a median gain of about 12%, but the writer argues the reaction to the October earnings report matters more than this history. Since 2004, the stock has made 14 one-day moves of 10% or more after that report, and in 13 of those years it closed the quarter in the same direction; last year shares fell 10% and finished the quarter down about 22%. Revenue growth has slowed each quarter, from 18% in late 2025 to 13% in April–June 2026, and management forecasts 12% for the third quarter. The stock, at roughly $72, is 42% below its 52-week high of $124.86 and trades near 19 times analysts' 2027 earnings estimates. The writer says the fourth-quarter forecast, which implies growth of about 11% to 14%, will matter more than the third-quarter results reported on Oct. 20.
- IBM Reports Oct. 21. Should You Buy the Stock 29% Below Its June Record?
Related markets
Latest news
- Why Meta's Q3 earnings could be a little hard to interpret
Meta is reporting its third-quarter earnings after the market closes Wednesday, and Yahoo Finance's Brian Sozzi says the report will be hard to interpret. Recent good news on Meta's AI products, including new models and an AI agent, may not appear directly in the results but will likely be discussed on the earnings call. The key uncertainty is how investors will react if Meta raises its capex outlook again: it could be seen as fueling those products, or as overspending on offerings not yet reflected in financials. Sozzi expects the market to give Meta the benefit of the doubt on higher capex, as long as the increase does not shock investors.
- Zerohash rolls out a new tool to move crypto without copying wallet addresses
Zerohash launched AUTH, a service that lets users move crypto, stablecoins and blockchain-based stock tokens between linked exchange accounts or self-custody wallets without copying wallet addresses or choosing a blockchain network. To transfer, users pick an account in an app that offers AUTH, sign in and approve the move, while the service handles routing and settlement and each app sets which assets and transfer types it allows. AUTH supports more than 600 connections, including Coinbase, Robinhood, Gemini, MetaMask and Phantom, with Coinbase, Robinhood and Gemini live and Kraken in beta. The launch comes as Zerohash's application for a national trust bank charter, returned by the Office of the Comptroller of the Currency in July, remains pending after a narrower refiling on Aug. 18.
- 2 charts show why Wall Street is right to worry about tech stocks
Rising cost of capital could affect the financial statements of hyperscalers such as Oracle (ORCL) and Google (GOOG, GOOGL) in 2027, as they need fresh debt to fund AI infrastructure and free cash flow may turn negative. JPMorgan strategist Mislav Matejka forecasts hyperscaler free cash flow will turn negative in 2027, implying credit markets will drive more of the AI build-out. Consensus estimates for 2027 capital expenditures are already rising from levels experts believe are too low. Morgan Stanley sees total 2027 capex among hyperscalers reaching $1.6 trillion, up from $978 billion estimated for this year. Dan Ives of Yorkville expects capex to reach the trillions and over 1,000 datacenters to be built in the next few years.
- Update on loan rate cuts as of the evening of Oct 19: MB, VietinBank, SHB, OCB join in
SHB, MB, VietinBank and OCB have announced loan rate cuts, following Agribank, Vietcombank, BIDV, ACB, LPBank and VietBank, with typical reductions of 1.5-2% per year. MB is cutting 1.5% per year for five priority sectors, to rates from 7.9% per year, and up to 2% in some cases; VietinBank is cutting up to 2% per year, while OCB offers up to 2.25% per year on some medium- and long-term loans for OCB Priority Banking members. SHB is cutting 1.5-2% per year for businesses and households and offers rates from 5.5% per year for lecturers and students at some universities. Vietcombank commits to cutting at least 2% through year-end, BIDV applies rates from 6% per year on short-term VND loans from 15/10/2026, and VietBank runs a VND 3,000 billion package. Specific benefits depend on borrower type, loan purpose, term and program conditions, following directives from the Government and the State Bank of Vietnam.
- Nvidia wins CPU business from Modal, previously exclusive to AMD and Intel
Modal, a San Francisco-based AI cloud startup that previously ran its AI agent workloads only on Intel and AMD processors, will begin using Nvidia's new Vera CPU. Early tests showed the Nvidia chip doubled work capacity for AI agents, and Modal plans to run it alongside Intel and AMD chips, assigning each task to the most efficient hardware, though integration requires substantial software changes. Modal recently raised $750 million in a round led by Accel at a $15.75 billion valuation and expects $1 billion in sales over the next year, with usage tripled and revenue up more than 15 times year-over-year. Nvidia projects at least $20 billion in Vera chip revenue this fiscal year in a market it estimates at about $200 billion, and says OpenAI, Anthropic, Oracle and Perplexity also plan to use the chips.
- America's EV Plans Have Died
Billions of dollars went into EV factories, dealerships and marketing after President Biden set a goal for 50% of new US car sales to be zero-emission by 2030, but EV sales have since fallen sharply. US EV sales dropped 30.7% in the first nine months of 2026, after the $7,500 tax credit expired on September 30 last year, and gas prices near $4.50 per gallon have done little to lift them. According to Kelley Blue Book, the average transaction price of a new EV was $54,754 in August, above the $50,089 average for all new cars. Ford's EV sales fell 80.2% to 6,047 in the third quarter, and it has no new EV planned until its Fathom launches next year, while Tesla holds over 50% of the market and no other major automaker has even 10%. The article says EVs could recover if gas prices reach $5 and stay there for months, but that is uncertain.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.