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Netflix third-quarter earnings missed expectations , and Wall Street analysts are split on the streamer's path going forward. Shares of Netflix shed 6% in Wednesday's premarket trading hours after the company reported earnings per share of $5.87, missing the $6.97 analysts polled by LSEG had forecast. The streamer blamed the weaker-than-expected result on an unexpected Brazilian tax dispute. Netflix's third-quarter revenue rose 17% to $11.51 billion, and was in line with expectations. The company expects revenue to rise another 17% year-over-year in its fourth quarter on the back of pricing adjustments and continued membership and ad revenue growth. For its full year, Netflix forecast that revenue could reach $45.1 billion. This would mark a 16% rise from last year's number and is in line with previous expectations of revenue growing between 15% and 16%. Following the report, most analysts remained split between a neutral and optimistic stance on Netflix going forward. Barclays, JPMorgan and Goldman Sachs reiterated their neutral-equivalent ratings following the report. UBS, Morgan Stanley and Bank of America kept their buy-equivalent ratings. Here's what analysts at some of Wall Street's biggest shops had to say on the report. Barclays stands by neutral rating and $1,100 price target Analyst Kannan Venkateshwar's target implies about 11% downside from Tuesday's close. "Overall therefore, the company continues to execute well but this is broadly baked into expectations and valuation. The stock has also come to be seen as defensive given its relative lack of exposure to tariffs and other macro factors which has also helped valuation. Given this backdrop, we see limited upside catalysts but if the company does decide to undertake major M & A or invest in more content (sports for instance) or marketing to drive engagement, it could become a narrative headwind over the medium term." JPMorgan reiterates neutral rating, lowers price objective to $1,275 from $1,300 JPMorgan's forecast corresponds to upside of around 3%. "NFLX 3Q results and 4Q outlook were solid overall, but did not include as much upside as recent quarters. … We believe the bigger focus on numbers is the lack of revenue upside in the back half. … The other key focus area coming off the call is that NFLX seemed to keep the door open to M & A. NFLX has historically been more builder than buyer, and has never made a significant acquisition. But the media landscape is evolving, and NFLX indicated that selective M & A would have to grow its opportunity set, strengthen its IP & entertainment offering, & accelerate its strategy." Citi keeps neutral rating and $1,280 price forecast Citi's target calls for 3% upside going forward. "The firm raised its 2025 revenue guidance and modestly lowered margin guidance due to the recognition of an expense in Brazil that was disputed by Netflix. Given an adverse court ruling (related to another firm) that was adverse to Netflix, management recognized the expense this quarter. 4Q25 outlook was in line with Street estimates. Within today's release, the firm noted they benefited from a strong slate in Q3, are excited about the Q4 slate, and recorded the best ad sales quarter to date. Given the Brazil charge, we are not surprised to see shares trading modestly lower in after-hours trading." Goldman Sachs maintains neutral rating, $1,300 price target Analyst Eric Sheridan's forecast is 5% above Netflix's Tuesday closing price. "While the company did not provide detailed guidance and commentary for 2026 on the call, we came away from the earnings call with the impression that many of the key operating themes are still intact: a) forward revenue growth driven by elements of rising engagement, paired with a growing live events and overall content slate (with the gap between engagement and monetization likely remaining a key variable); b) cash content investments will continue to be a key area of growth (albeit likely lower than revenue growth); & c) the company remains in the early innings of scaling key platform and product innovations related to AI, advertising, and gaming." Bank of America reiterates buy rating and price objective of $1,490 The bank's price target was approximately 20% higher than Netflix's closing price on Tuesday. "Notably, NFLX did not provide a 2026 outlook, unlike in 3Q24 for 2025, which the company attributed to the unique circumstances of removing subscriber disclosure beginning in 2025. However, this does not appear to signal any noticeable change in underlying fundamentals as advertising is expected to more than double in 2025, engagement growth picked up in 3Q and the pricing environment is constructive on the heels of several price increases from competitors." UBS keeps buy rating, lifts price forecast to $1,495 from $1,450 UBS' target equates to upside of over 20%. "We see Netflix as a secular winner and solid 3Q results support our stance. … Our '26 est. are largely unch. and we believe strong 4Q growth provides a solid launch point for next yr (UBSe 14% rev/29% OI growth in '26; margins +270 bps). Mgmt is focused on reinvesting in the business organically and through 'selective M & A' and has no interest in legacy media (leaving the door open for Warner's studio assets, in our view." Morgan Stanley stands by overweight rating and $1,500 price target Analyst Benjamin Swinburne's price target implies upside of 21%. "Revenue growth of 17% ex-FX was in line with guidance and expectations, while underlying margins outperformed. Advertising momentum continues to build and is set to more than double YoY in '25. Engagement trends are improving vs. 1H25 and we remain bullish on '26 and beyond." ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
