Los Gatos, California-based Netflix, Inc. (NFLX) is a media and entertainment company that provides on-demand access to a vast library of TV series, films, documentaries, and games to subscribers in about 190 countries. Valued at a market cap of $400 billion, the company is expected to announce its fiscal Q4 earnings for 2025 after the market closes on Tuesday, Jan. 20.

Ahead of this event, analysts expect this media and entertainment company to report a profit of $0.55 per share, up 27.9% from $0.43 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. In Q3, Netflix’s EPS of $0.59 missed the forecasted figure by a notable margin of 14.5%. 

For the current fiscal year, ending in December, analysts expect NFLX to report a profit of $2.53 per share, up 27.8% from $1.98 per share in fiscal 2024. Furthermore, its EPS is expected to grow 26.9% year-over-year to $3.21 in fiscal 2026.

Shares of Netflix have gained 4.6% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 16.5% return and the State Street Communication Services Select Sector SPDR ETF’s (XLC) 19.6% uptick over the same time period.

On Dec. 8, Netflix shares plunged 3.4% as investors grew concerned about the company’s proposed $82.7 billion acquisition of Warner Bros. Discovery, Inc.’s (WBD) film and TV studios, including HBO. The deal was widely seen as too expensive, raising fears about overpayment and execution risk. The announcement triggered negative analyst reactions, with Rosenblatt downgrading the stock to “Neutral” from “Buy” and Huber Research cutting it to “Sell," calling the acquisition “very risky.”

Wall Street analysts are moderately optimistic about NFLX’s stock, with a "Moderate Buy" rating overall. Among 43 analysts covering the stock, 25 recommend "Strong Buy," three indicate "Moderate Buy,” 13 suggest "Hold,” and two "Strong Sell” ratings. The mean price target for Netflix is $128.99, indicating a 36.7% potential upside from the current levels.

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