Netflix (NFLX)
NASDAQCommunication ServicesEntertainmentSnapshot 2026-07-07
$76.18+0.21%
Close 2026-07-07 · 1-day change
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Track NFLX free→Netflix aims to grow revenue to about $51.2 billion in 2026. It targets a strong profit margin near 31.5%. Free cash flow is expected to rise to $12.5 billion. The company also authorized a $25 billion share buyback to return capital to shareholders.
Competition and regulatory challenges may pressure Netflix's growth and costs. Recent earnings missed expectations and the stock is in a deep drawdown. Copyright and legal issues could hurt financial results.
The market prices in about 15% revenue growth and values Netflix cheaply versus peers. Our fair value is well above the Street median, reflecting confidence in the company’s cash flow and margin targets.
Breaks if: buyback program is canceled or materially reduced
The Board authorized an additional $25 billion share repurchase program.
Newly stated in 2026-Q1. The Board authorized a $25 billion share buyback, adding to the existing program. This reflects a significant capital allocation decision aimed at enhancing shareholder value. The trajectory is newly initiated with no prior comparison.
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“Board authorized the repurchase of an additional $25 billion of the Company’s common stock.”
Breaks if: free cash flow falls below $9B in FY26
Targeting an increase in free cash flow to $12.5 billion for the fiscal year 2026.
Stated in 2 of last 2 quarters. 2026 FCF guidance increased to $12.5B from $11B. Cash from operating activities was $5.29B in 2026-Q1, up from negative $99.59M in 2025-Q4, indicating progress towards the target.
“We now expect 2026 FCF of approximately $12.5B, an increase from our previous projection of $11B.”
“We expect to generate free cash flow of roughly $11B.”
Breaks if: operating margin falls below 29% in FY26
Aim to maintain an operating margin of 31.5% for the fiscal year 2026.
Stated in 2 of last 2 quarters. 2026 operating margin target is 31.5%. Operating income was $3.96B in 2026-Q1, up from $762.14M in 2025-Q4, suggesting progress towards maintaining the margin.
“Similarly, we’re still targeting an operating margin of 31.5% for 2026.”
“We’re targeting a 2026 operating margin of 31.5%.”
Breaks if: revenue falls below $45B in FY26
Targeting an increase in free cash flow to $12.5 billion for the fiscal year 2026.
Stated in 2 of last 2 quarters. 2026 FCF guidance increased to $12.5B from $11B. Cash from operating activities was $5.29B in 2026-Q1, up from negative $99.59M in 2025-Q4, indicating progress towards the target.
“We now expect 2026 FCF of approximately $12.5B, an increase from our previous projection of $11B.”
“We expect to generate free cash flow of roughly $11B.”