Analysts Maintain Buy Ratings for Netflix Stock
Five analysts retained positive ratings for Netflix as some adjusted their individual price targets following recent earnings.
Updated on Oct. 25, 2026 in Television
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Five analysts upheld buy-equivalent ratings for Netflix on October 21 after the streaming giant reported its third-quarter financial results. While the sentiment remains positive, three of these analysts lowered their specific price targets for the company.
Why it matters
The target price adjustments follow the release of third-quarter results and a revised 2026 advertising revenue forecast of $2.7 billion. This change stems from a slower-than-expected rollout of new advertising product capabilities.
Netflix reported $12.874 billion in revenue for the third quarter of 2026, alongside an operating margin of 34.6%. Diluted earnings reached 87 cents per share for the period.
The players
Jessica Reif Ehrlich
She is a financial analyst who lowered her price target for Netflix to $90 from $105.
Sean Diffley
He is a financial analyst who adjusted his price target for Netflix to $77 from $80.
Alicia Reese
She is a financial analyst who moved her Netflix price target to $80 from $90.
Bryan Kraft
He is an analyst who maintained his $93 price target for Netflix stock.
John Blackledge
He is an analyst who continued to hold a $100 price target for Netflix.
The details
Following the third-quarter earnings release, analysts including Jessica Reif Ehrlich, Sean Diffley, and Alicia Reese adjusted their price targets downward. Despite these revisions, other analysts, including Bryan Kraft and John Blackledge, maintained their existing price targets.
Timeline
The third quarter for Netflix concluded on Sept. 30, 2026.
Netflix released its third-quarter financial results on Oct. 20, 2026.
Analysts adjusted their respective price targets on Oct. 21, 2026.
Industry Dynamics
This analyst activity follows the updated guidance regarding the Netflix 2026 advertising revenue forecast. The adjustments track with the firm’s current pace of rolling out new advertising product capabilities.
The slower rollout of advertising features may impact the frequency of ad breaks for subscribers on ad-supported tiers. These financial updates reflect broader corporate efforts to balance subscription revenue with advertising growth.
The takeaway
While analysts remain bullish on Netflix, the lower price targets highlight the challenges of scaling new advertising products. Investors and viewers should monitor how quickly the company integrates these new technical capabilities into its platform.
Further reading
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Does an analyst's lower price target for a company like Netflix make you reconsider your investments?
