"Netflix's Q1 revenue of $12.25 billion exceeded the $12.17 billion consensus estimate, with net income soaring to $5.28 billion, an 83% year-over-year increase, largely due to a $2.8 billion Warner Bros. termination fee."
"Despite strong Q1 results, Netflix's Q2 guidance of $12.57 billion revenue and $0.78 EPS fell short of Wall Street expectations, indicating a potential slowdown in sales and margin momentum."
"Wolfe Research lowered its price target for Netflix stock to $107 from $110, citing the Q2 forecast miss as a sign of slowing momentum, while Barclays cut its target to $110 from $115."
Netflix reported impressive Q1 2026 earnings with revenue of $12.25 billion and net income of $5.28 billion, surpassing expectations. However, the Q2 forecast of $12.57 billion revenue and $0.78 EPS fell short of Wall Street's predictions, leading to a 10% drop in stock price. Analysts expressed concerns over potential deceleration in sales momentum, prompting Wolfe Research and Barclays to lower their price targets for Netflix stock. The combination of strong earnings and disappointing guidance created a volatile market reaction.
Read at 24/7 Wall St.
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