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$81.72
Market Capi
$340B
Growth-adj P/E (3-yr hist)i
1.1x
Growth-adj P/E (3-yr proj)i
0.9x
P/S 26Ei
6.6x
P/S 28Ei
5.4x
EV/EBIT 26Ei
21x
EV/EBIT 28Ei
15x
P/E 26Ei
23x
P/E 28Ei
18x
P/S 26Ei
6.6x
EV/EBIT 26Ei
21x
P/E 26Ei
23x
P/S 28Ei
5.4x
EV/EBIT 28Ei
15x
P/E 28Ei
18x
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
$94.33+28%
Consensusi
Buy
51 analysts covering
Net debti
$4.9B
Div. Yieldi
n/a
Buyback Yldi
0.9%
Market Capi
$340B
P/E 26Ei
23x
Adj. P/E (fwd.)i
0.9x
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
$94.33+28%
Consensusi
Buy
51 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
Second-quarter 2026 revenue reached $12.56 billion, up 13% year over year (12% currency-neutral), driven by membership growth, pricing, and higher advertising sales.
Diluted EPS came in at $0.80, slightly ahead of the ~$0.79 consensus and up from $0.72 a year earlier, though free cash flow of $1.53 billion fell year over year on front-loaded content spending.
International markets stood out, with quarterly revenue topping $4 billion in EMEA and $1.5 billion each in Latin America and Asia-Pacific.
Third-quarter revenue guidance of $12.86 billion (~12% growth) came in below the ~$13 billion Street expected, even as full-year guidance of $51.0-$51.4 billion and a 31.5% margin held steady.
Recent developments
Netflix completed a $1 billion offering of 5.250% senior notes due 2036 on July 22, 2026 to refinance debt maturing later this year.
The company disclosed it paid $587 million in cash for InterPositive, an AI post-production startup co-founded by Ben Affleck, bringing the team in-house.
Board director Anne Sweeney resigned effective July 26, 2026 after more than a decade, in what the company called a routine departure.
An April $25 billion buyback authorization left roughly $27 billion in repurchase capacity after a record $4.7 billion was bought back this quarter.
Debate & sentiment
Bulls cite accelerating profitability, with full-year operating margin guided to 31.5% (from 29.5% in 2025) and advertising revenue tracking toward roughly $3 billion as upfront deals near completion.
Skeptics note the third-quarter revenue guidance miss, questioning whether pricing and ad-tier gains can keep offsetting slower subscriber growth in an increasingly saturated market.
Shares have pulled back sharply over the past year, leaving valuation multiples compressed relative to forward earnings growth — read by some as opportunity, others as a slower-growth repricing.
Bulls view the expanding live-sports slate as a durable subscriber lever; bears note it takes a disproportionate share of content spend versus the viewing hours it generates.
Consensusi
Buy
Average targeti
$94.33+28%
Highest targeti
$135.00+83%
Lowest targeti
$70.00-5%
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