For Immediate Release
Chicago, IL – April 14, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix NFLX, Apple AAPL, Amazon AMZN and Disney DIS.
Here are highlights from Monday’s Analyst Blog:
Netflix Ahead of Q2 Earnings: Should You Buy the Stock Now?
Netflix is slated to report first-quarter 2026 results on April 16.
For the first quarter, Netflix expects revenues of $12.16 billion, indicating growth of 15.3% year over year.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $12.17 billion, indicating growth of 15.42% year over year.
On the profitability front, the company projects first-quarter operating income of $3.906 billion and an operating margin of 32.1%. Net income for the quarter is forecasted at $3.264 billion, with diluted earnings per share of 76 cents.
The consensus mark for earnings is pegged at 76 cents per share, currently at par with the company’s expectations. The estimate has remained unchanged over the past 30 days.
NFLX’s Earnings Surprise History
In the last reported quarter, the company delivered an earnings surprise of 1.82%. The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, the average surprise being 1.22%.
Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote
Earnings Whispers for NFLX
Our proven model predicts an earnings beat for Netflix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
NFLX has an Earnings ESP of 1.69% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping Upcoming Results of Netflix
Management projected the first quarter to benefit from continued membership growth, higher pricing and an expanding advertising revenue base. Content amortization growth was expected to be heavier in the first half of 2026, reflecting a richer content deployment schedule. Despite this cost front-loading, the guided 32.1% operating margin for the first quarter marked a meaningful year-over-year step up from the 31.7% achieved in first-quarter 2025. Netflix also guided full-year 2026 free cash flow of approximately $11 billion, underscoring confidence in sustained operating leverage.
Content breadth remained a key focus entering the first quarter. In January 2026, Netflix commenced a new U.S. licensing partnership with Universal for new-release live-action films, complementing existing deals with Illumination and DreamWorks Animation studios. The company also expanded its pay 1 film pact with Sony Pictures Entertainment from the United States to a global arrangement. Several licensed titles from Paramount further deepened the catalog depth.
On the live programming front, Netflix streamed all 47 games of the 2026 World Baseball Classic in Japan, an event expected to support engagement in that market, and launched MLB Opening Night exclusively on the platform. The company also introduced video podcasts with Spotify's The Ringer, iHeartMedia and Barstool Sports, expanding content variety and engagement hours in the quarter.
The advertising segment continued to scale into the quarter under review. Ad revenues exceeded $1.5 billion in 2025, growing more than 2.5 times the prior year, and Netflix projected a near-doubling in 2026. On March 4, 2026, the company announced expanded Netflix Ads Suite capabilities, including new audience targeting through Amazon DSP and Yahoo DSP integrations and a proprietary Conversion API that outperformed industry benchmarks by more than 75% in early testing. These enhancements were positioned to drive advertiser demand and deepen Netflix's appeal as a full-funnel performance platform.
In February 2026, Netflix declined to raise its offer for Warner Bros. Discovery following a competing bid, electing to prioritize financial discipline over deal pursuit. This decision effectively removed approximately $275 million in anticipated acquisition-related costs from 2026 operating plans, offering potential upside to margin guidance.
With cleaner financial visibility, a front-loaded content slate, and a fast-growing advertising business, Netflix entered the first-quarter print with its core growth story intact. Given management's guided revenue trajectory and margin expansion, investors appear well-positioned to buy the stock given Netflix's expanding monetization capabilities and durable competitive advantages against other streaming giants, including Apple, Amazon and Disney.
Top-Line Growth Estimates for Q1
The consensus mark for first-quarter 2026 Asia-Pacific revenues is pegged at $1.48 billion, indicating 17.6% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Latin America revenues is pegged at $1.48 billion, suggesting a rise of 18% from the figure reported in the previous quarter.
Moreover, the consensus mark for EMEA revenues is pegged at $3.89 billion, suggesting an increase of 14.4% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for the United States and Canada revenues is pegged at $5.29 billion, indicating a 14.7% rise from the figure reported in the year-ago quarter.
NFLX Price Performance & Stock Valuation
Shares of Netflix have declined 15.2% in the past six-month period while the Zacks Consumer Discretionary sector has lost 9.5%. Amazon and Apple’s shares have returned 10.2% and 5.1% while Disney has declined 10.8%, respectively, in the same time frame.
Now, let’s look at the value Netflix offers investors at current levels. Currently, NFLX is trading at 30.53X forward 12-month earnings, above its five-year median of 32.61X. Meanwhile, the Zacks Broadcast Radio and Television industry’s forward earnings multiple sits at 27.4X. The company’s valuation looks somewhat stretched compared with its range and the industry average.
Investment Considerations: Balancing Risk and Reward
Netflix presented a compelling buy case ahead of first-quarter 2026 results. The company's advertising business, which surpassed $1.5 billion in 2025, was projected to nearly double in 2026, supported by an expanded Netflix Ads Suite. New content licensing partnerships with Universal, Sony and Paramount, alongside live programming traction, strengthened the platform's engagement outlook. With a disciplined capital allocation stance and improving profitability, NFLX appeared well-positioned for continued shareholder value creation.
Conclusion
Netflix entered its first-quarter 2026 earnings print with guided revenue growth of 15.3%, an expanding advertising business, and a strengthened content portfolio following new licensing partnerships with Universal, Sony and Paramount. With its core growth drivers intact and live programming gaining traction, NFLX appeared a worthy buy ahead of the April 16 results.
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