Netflix Q2 Earnings Preview: Strong Revenue and Profit Growth Expected

Netflix is set to report strong Q2 revenue growth, with a 6.3% increase to $11.04 bln and a 45% EPS increase to $7.05. The company's high valuation of 46.6 times 12-month forward earnings leaves limited room for error. Its stock has risen 42% YTD and is finding support at the 50-day simple moving average.

Netflix (NFLX) is poised to report strong second-quarter (Q2) earnings, with analysts expressing optimism about the streaming giant's prospects. The company is expected to announce its Q2 results on July 17, 2025.

According to a top analyst from Wedbush, Alicia Reese, Netflix's stock (NFLX) should be bought, with a price target of $1,400. Reese highlighted the company's ability to boost its ad-tier revenue and other positives. Wall Street expects Netflix to report earnings per share (EPS) of $7.07, reflecting a 45% year-over-year growth, and revenue of $11.04 billion, up 15.5% year-over-year [1].

Reese believes that Netflix's ad-tier revenue will accelerate over the next several years through multiple initiatives, including live events and enhanced advertising solutions. She also expects price hikes to fuel revenue growth in 2025 and the ad tier to drive top-line growth in 2026. Reese ranks 620 out of more than 9,800 analysts tracked by TipRanks and has a success rate of 66% [1].

Several other analysts have reiterated their Buy rating on Netflix stock. KeyBanc analyst Justin Patterson increased the price target for Netflix stock to $1,390 from $1,070 and reaffirmed a Buy rating. Patterson expects the company to deliver low-double-digit revenue growth over the medium term and EPS of nearly $40 by 2027, driven by live events, price increases, and an ad ramp [1].

Despite the positive outlook, Netflix's stock has risen 42% year-to-date (YTD) and is currently trading at a high valuation of 46.6 times 12-month forward earnings. The stock has found support at the 50-day simple moving average. With 27 Buys and 10 Holds, Netflix stock scores a Strong Buy consensus rating on TipRanks, with an average price target of $1,314.48, implying 4.3% upside potential from current levels [1].

References:
[1] https://www.tipranks.com/news/top-wedbush-analyst-reaffirms-a-buy-rating-on-netflix-stock-nflx-ahead-of-q2-earnings