Start here if you're new
what it is
Netflix sells monthly access to shows, movies, and games to about 325 million paying households in more than 190 countries.
how it gets paid
Last year Netflix made $45.2B in revenue. United States & Canada was the main engine at $18.5B, or 41% of sales.
why it's growing
Revenue grew 15.9% last year. Consensus data shows an 18.84% earnings miss. That matters more here because the stock trades at 35.8x trailing earnings and investors are paying for smooth.
what just happened
Netflix missed estimates, with EPS at $0.56 versus a $0.69 consensus.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
70/100 earnings predictability — reasonably predictable
35.8x trailing p/e — you're paying up for this one
26.5% return on capital — every dollar works hard here
xvary composite: 62/100 — average
What they do
Netflix sells monthly access to shows, movies, and games to about 325 million paying households in more than 190 countries.
Netflix wins because your next show is already on your phone, TV, and laptop before you think about canceling. It has about 325 million paid memberships in more than 190 countries, which spreads content costs across a giant base smaller rivals cannot match. Fixed-cost leverage (big upfront spending → cheaper per user as scale grows → so what: scale turns hits into a 29.5% operating margin business).
How they make money
$45.2B
annual revenue · their business grew +15.9% last year
United States & Canada
$18.5B
+14.0%
Europe, Middle East & Africa
$14.6B
+16.0%
Latin America
$4.9B
+11.0%
Asia-Pacific
$7.2B
+18.0%
The products that matter
global streaming subscriptions
Streaming Service
$45.2B revenue · ~325M paid memberships
it's the whole business: $45.2B in annual revenue, up 15.9%, supported by about 325 million paid memberships across 190+ countries. one product still does all the heavy lifting.
100% of revenue
Key numbers
~325M
paid memberships
That is the audience paying Netflix every month, which is why it can spread content costs wider than most rivals.
29.5%
operating margin
Operating margin means profit after running the business but before interest and taxes, so what: Netflix keeps almost 30 cents from each revenue dollar.
26.5%
return on capital
Return on capital means profit earned on the money tied up in the business, so what: Netflix turns invested dollars into earnings better than many large media peers.
35.8x
trailing p/e
Price-to-earnings means what you pay for each dollar of profit, so what: this stock already assumes a lot of future success.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- long-term debt $14.5B (4% of capital)
- net profit margin 25.2% — keeps 25 cents of every dollar in revenue
- return on equity 32% — $0.32 profit for every $1 investors have put in
A+ with balance sheet grade and net profit margin standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in NFLX 3 years ago → it's now worth $27,080.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
Netflix missed estimates, with EPS at $0.56 versus a $0.69 consensus.
Consensus data shows an 18.84% earnings miss. That matters more here because the stock trades at 35.8x trailing earnings and investors are paying for smooth execution.
$10.9B
revenue
$0.56
eps
29.5%
gross margin
the number that mattered
The 18.84% EPS miss mattered most because premium stocks get judged on consistency, not just size.
-
netflix has agreed to acquire the main assets of warner brothers discovery.the boards of both companies reached a deal on the sale of the latter’s streaming service and production assets to netflix for an estimated $22.75 a share. this includes wbd’s vast tv and film library, movie and tv production facilities, and hbo max and hbo.
-
the equity value is $72 billion, but increases to $82.7 billion when debt is included.
-
the payment would be $23.35 a share in cash and $4.50 a share in newly issued netflix stock.
-
paramount skydance is fighting the proposal and is appealing directly to wbd shareholders.the firm made an all-cash bid for all of wbd’s assets, (including the tv stations) for $30.00 a share. after the wbd board stated that the netflix offer was better, oracle founder, larry ellison, personally guaranteed over $40 billion of the proposal.
-
wbd’s board still rebuffed the bid and advised other shareholders to do the same.however, some institutional owners of the stock have indicated that they may accept the paramount offer.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the biggest risk is simple: about 325 million paid memberships leave less room for easy growth math. when your whole revenue base is one streaming product, slowdown in member adds or pricing power hits the full story at once.
med
scale makes the next leg harder
About 325 million paid memberships is an advantage and a constraint. When you are already this large, the next wave usually has to come from higher prices, new markets, or better retention.
If growth slips while the stock still trades at 35.8x trailing earnings, valuation has less room to forgive it.
med
one revenue engine means one pressure point
The full $45.2B revenue base comes from streaming subscriptions. That simplicity is nice until pricing stumbles or membership growth cools, because there is no second segment to smooth the result.
What would change the tone here: if the path from $45.2B to the $51B estimate starts looking shaky, the whole premium-multiple story gets thinner.
med
deal noise can become deal reality
The current feed is heavy on reported warner bros. discovery terms, rival bids, debt assumptions, and payment mix. That starts as noise. It stops being noise if management time or capital gets pulled away from the core streaming machine.
If investors start valuing NFLX as an acquirer instead of a focused operator, a single quarter with $5.87 EPS may matter less than you expect.
low
some displayed data needs verification
The 68.5% operating margin figure is unusually high for media, and the target section carries its own internal mismatch. Thin datasets happen. You just should not confuse them with certainty.
That does not break the business case, but it does mean you should verify the touchiest numbers before you build conviction on them.
combined, these risks all point to the same place: the stock's premium setup needs the $45.2B revenue base, 26.3% net margin, and growth narrative to keep working together.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly report
watch whether revenue stays near the $11.5B quarterly run-rate and whether EPS keeps building on the latest $5.87 print.
metric
the $45.2B to $51B step-up
the current estimate calls for $51B in fy2026 revenue. if that path slips, the premium multiple loses part of its case.
risk
warner bros. discovery deal terms
the feed is heavy on reported acquisition terms. watch whether this stays as noise or becomes the main capital-allocation story.
trend
membership growth at scale
About 325 million paid memberships is the strength. the next question is whether Netflix still grows meaningfully from here without leaning only on price.
Analyst rankings
short-term outlook
below average
momentum score 4. in human-speak, analysts think near-term upside looks less obvious from here.
risk profile
average
stability score 3 means typical risk for an individual stock — not a bunker, not chaos.
chart momentum
top 5%
technical score 1 is the highest rating. the tape looks strong even while the short-term outlook stays more cautious.
earnings predictability
70 / 100
better than messy, worse than clockwork. you should expect some surprise factor around results.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 1,750 buyers vs. 1,330 sellers in 3q2025. total institutional holdings: 3.4B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$76
$160
$89
current price
$118
target midpoint · +32% from current · 3-5yr high: $215 (+140% · 25% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive