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$68.95
Market Capi
$313B
Growth-adj P/E (3-yr hist)i
1.1x
Growth-adj P/E (3-yr proj)i
0.8x
P/S 26Ei
6.1x
P/S 28Ei
5.0x
EV/EBIT 26Ei
20x
EV/EBIT 28Ei
13x
P/E 26Ei
21x
P/E 28Ei
16x
P/S 26Ei
6.1x
EV/EBIT 26Ei
20x
P/E 26Ei
21x
P/S 28Ei
5.0x
EV/EBIT 28Ei
13x
P/E 28Ei
16x
Revenue
2026E
$51B
Gross Margini
48%
Hist. CAGRi
13%
Proj. CAGRi
12%
EBIT
2026E
$16B
Op. Margini
30%
Hist. CAGRi
33%
Proj. CAGRi
19%
Net profit
2026E
$15B
Net Margini
24%
Hist. CAGRi
35%
Proj. CAGRi
20%
Business Model
Recent Developments
Average Targeti
$113.94+47%
Consensusi
Buy
50 analysts covering
Net debti
$4.3B
Div. Yieldi
n/a
Buyback Yldi
0.9%
Market Capi
$313B
P/E 26Ei
21x
Adj. P/E (fwd.)i
0.8x
Revenue 26E
$51B
Proj. CAGRi
12%
Gross Margini
48%
EBIT 26E
$16B
Proj. CAGRi
19%
Op. Margini
30%
Net Profit 26E
$15B
Proj. CAGRi
20%
Net Margini
24%
Average Targeti
$113.94+47%
Consensusi
Buy
50 analysts covering
Profile
Netflix is a global streaming entertainment service that distributes licensed and original films, series, documentaries, and live events directly to consumers over the internet. Revenue comes from two primary streams:
Geographically, the United States and Canada contribute approximately 44% of revenue, EMEA roughly 32%, Latin America ~12%, and Asia-Pacific ~12%.
Industry
Netflix competes in the global direct-to-consumer video streaming market — a subscription-plus-advertising business targeting individual households worldwide. The competitive set includes Amazon Prime Video, Disney+, Max, Apple TV+, and YouTube. The market is high-churn-risk but benefits from strong habitual use; retention is driven by content quality rather than switching costs. Pricing power has improved materially as Netflix has shed lower-tier subscribers and raised prices without meaningful cancellation spikes.
Key metrics
Economic moat
Netflix's deepest advantage is its content flywheel: scale revenue funds a content budget that no pure-play rival can match, which drives viewing hours, which justify higher prices and attract advertisers. A recommendation algorithm trained on hundreds of billions of viewing hours creates an engagement loop that new entrants cannot replicate quickly. Global simultaneous distribution gives Netflix a unique licensing position — as demonstrated by the global Sony pay-1 deal — that smaller streamers cannot offer studios. Brand recognition across 190 countries is a durable secondary moat.
Reed Hastings
Hastings co-founded Netflix in 1997 alongside Marc Randolph, steering it from a DVD-by-mail service to the world's largest streaming platform over more than two decades as CEO. He transitioned to Executive Chairman in January 2023 after handing the co-CEO role to Gregory Peters, remaining on the board as the company's institutional memory and cultural anchor.
Gregory Peters
Peters was named co-CEO alongside Ted Sarandos in January 2023, having previously served as Chief Product Officer. His background spans product design and technology, and his elevation reflects Netflix's increasing emphasis on product experience — spanning the app, recommendation systems, and the advertising tier buildout — as key competitive differentiators.
Ted Sarandos
Sarandos has been co-CEO since July 2020 and is the architect of Netflix's original content strategy, which transformed the company from a distributor of licensed material into one of the world's largest producers of film and television. His relationships across Hollywood and his track record of greenlit franchises give him unusual influence over the content investment cycle.
Spencer Neumann
Neumann joined as CFO in January 2019, previously serving in finance leadership roles at Activision Blizzard and The Walt Disney Company. He has overseen Netflix's transition from a cash-burning growth story to a high free-cash-flow business, managing the capital allocation discipline that has enabled both content investment and shareholder returns.
P/S Ratioi
EV/EBITi
P/E Ratioi
Revenue
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
EBIT
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Net profit
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Values in billions of USD.
Operating cashflow · Levered Free Cash Flow
Free Cash FlowFree cash flow year-over-year growth labels for 2022 are hidden because the prior comparison year is missing, zero, or negative. Growth rates from missing or non-positive bases are not meaningful.
CAPEX
Values in billions of USD.
Margins
Rentability
Balance sheet
Values in billions of USD.
Liquidity ratios
Debt-to-Equity-Ratio
Last earnings
Q1 2026 revenue rose 16% year over year to $12.25 billion, beating consensus estimates, with operating income growing at a similar clip. EPS came in at $6.61, an 86% jump from the prior-year quarter, handily clearing analyst expectations.
With subscriber count reporting now discontinued, advertising-tier adoption became the standout KPI: over 60% of new sign-ups in ad-supported markets chose the cheaper ad tier in the quarter, and advertiser count climbed roughly 70% year over year to more than 4,000 partners.
Management held full-year 2026 guidance at $50.7–$51.7 billion in revenue and a 31.5% operating margin, with Q2 guided slightly above the quarterly run rate. The stock sold off modestly after the print despite the beat, reflecting market sensitivity to the valuation multiple.
Recent developments
In February 2026, Warner Bros. Discovery terminated its attempted merger agreement with Netflix; Paramount Skydance paid Netflix a $2.8 billion termination fee, a meaningful one-time cash inflow that reinforces the balance sheet.
Netflix expanded its Sony Pictures pay-1 film deal from a US-only to a global arrangement — the first time a streaming service will premiere theatrical films simultaneously worldwide in the pay-1 window, with full global rollout expected in early 2029. Separate deals with Universal and Paramount added dozens of licensed titles across US and international territories.
On the technology side, Netflix acquired InterPositive, a generative AI filmmaking tools company co-founded by Ben Affleck, signalling an ambition to embed AI into its content production pipeline rather than rely solely on third-party tooling.
Debate & sentiment
Bulls point to the advertising business as an under-appreciated growth engine: on-track to double to $3 billion in 2026, live sports inventory commands premium ad rates and non-skippable inventory, and the advertiser base is still in early scaling mode. If ad revenue compounds at this pace, it could materially re-rate the earnings multiple.
Sceptics focus on valuation versus a maturing core business: subscriber growth is no longer reported, content spend remains enormous, and competition from Alphabet, Amazon, Apple and Disney continues to intensify. Some DCF models place intrinsic value well below the current share price, pointing to stretched forward multiples relative to peers.
A key swing factor is live sports execution: Netflix's NFL, boxing, and other live-event bets are still early. If live programming drives meaningful ad-tier engagement and retention, the bear case on growth saturation weakens considerably — but rights costs could also compress margins if bidding escalates.
Consensusi
Buy
Average targeti
$113.94+47%
Highest targeti
$151.40+95%
Lowest targeti
$80.00+3%
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