Consensus expectations for Q1 2026 place revenue at $12.18 billion and EPS at $0.76, while the current stock price of $103.16 remains below the average analyst price target of $115.80.
Investors are primarily focused on the scaling of the advertising-supported tier and whether ad revenue is on track to hit management's $3 billion target for the 2026 fiscal year.
Recent momentum is driven by early price increases in the U.S. and high subscriber retention following the global password-sharing crackdown. Furthermore, sentiment has improved significantly after Netflix abandoned its pursuit of Warner Bros. Discovery, a move seen as a commitment to capital discipline.