Netflix is Set to Report Earnings Today. Hits Like 'KPop Demon Hunters' Likely Drove Strong Results

Core Insights - Netflix's upcoming third-quarter results are anticipated to reflect the success of its investments in original content, price increases, and advertising growth, with analysts generally optimistic about the stock's potential for further gains [1][7]. Financial Performance - Analysts expect Netflix to report earnings per share of $6.92 and revenue of $11.52 billion, with a majority rating the stock as a "buy" and an average target price of $1,400, indicating a potential upside of 13% from recent trading levels [2]. - The stock has experienced a significant increase of nearly 40% in 2025, outperforming the S&P 500's 15% gain, although it remains below its June peak of around $1,340 [3]. Industry Impact - As a leading player in the streaming sector, Netflix's performance is likely to influence other companies in the industry, such as Disney, and may highlight consumer spending resilience amid economic uncertainties [4]. - UBS analysts maintain a positive outlook on Netflix, citing expected growth from new memberships, price increases, and successful shows like "KPop Demon Hunters" and the return of "Squid Game" [5]. Content Strategy - Analysts express confidence in Netflix's fourth-quarter content lineup, which includes popular series like "The Witcher" and "Stranger Things," as well as NFL events, indicating a strategic focus on sports to drive growth [6]. Competitive Landscape - While some analysts from Morgan Stanley and Bank of America acknowledge competitive threats from AI-generated content and potential mergers in the industry, they still uphold "buy" ratings for Netflix, believing its scale will help maintain its leadership position in the near to mid-term [7].