Netflix In Focus Ahead Of Fourth-Quarter Earnings

by | Jan 20, 2026 | General

Netflix, Inc. (NASDAQ:NFLX) is in the spotlight Tuesday ahead of fourth quarter earnings today after the market closes.

Earnings Around The Corner

Netflix is anticipated to report earnings per share of 55 cents, and revenue of $11.97 billion.

For the prior quarter, the company reported earnings per share of 59 cents, missing the consensus estimate of $6.97. In addition, the company reported revenue of $11.51 billion, in line with the consensus estimate.

Analyst Changes: Ahead of the earnings report, multiple analysts issued price target adjustments.

  • Keybanc analyst Justin Patterson maintained an Overweight rating on Netflix and lowered the price target from $139 to $110.
  • Rosenblatt analyst Barton Crockett maintained a Neutral rating on Netflix and maintained a $105 price target.
  • Wedbush analyst Alicia Reese maintained an Outperform rating on Netflix and lowered the price target from $140 to $115.
  • TD Cowen analyst John Blackledge maintained a Buy rating on Netflix and lowered the price target from $142 to $115.
  • HSBC analyst Mohammed Khallouf initiated coverage on Netflix with a Buy rating and announced a price target of $107.

Updated Merger Agreement

Netflix and Warner Bros. Discovery, Inc. (NASDAQ:WBD) said Tuesday they have amended their merger agreement to an all-cash transaction.

The revised deal maintains a value of $27.75 per share for Warner Bros. Discovery stockholders and is intended to simplify the transaction, provide greater certainty of value and accelerate the path to a stockholder vote, which could take place as early as April 2026. Warner Bros. has filed a preliminary proxy statement with the Securities and Exchange Commission.

Stockholders will also receive additional value through shares of Discovery Global following its planned separation from Warner Bros. Discovery, which is expected to be completed within six to nine months prior to closing.

The amended agreement was unanimously approved by both companies’ boards and remains subject to regulatory approvals, completion of the Discovery Global separation and Warner Bros. Discovery stockholder approval.

Technical Analysis Of Netflix

Currently, the stock is trading 9.3% below its 20-day simple moving average and 4.6% below its 100-day SMA, indicating some short-term weakness while still maintaining a longer-term perspective. Over the past 12 months, shares have increased by 1.19%, and they are positioned closer to their 52-week lows than highs, reflecting a cautious sentiment among traders.

The RSI is currently neutral, indicating no immediate overbought or oversold conditions, while the MACD is below its signal line, suggesting bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum, which traders should watch closely for potential shifts.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for NetFlix, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: Weak (Score: 8.87/100) — The stock is underperforming the broader market.
  • Quality: Strong (Score: 87.15/100) — The balance sheet remains healthy.
  • Value: Risk (Score: 14.63/100) — Trading at a steep premium relative to peers.

The Verdict: Netflix’s Benzinga Edge signal reveals a mixed outlook, with strong quality metrics but weak momentum and value scores. Investors should be cautious given the low momentum score while considering the solid quality ranking.

NFLX Price Action: At the time of writing, Netflix shares are trading 1.44% higher at $89.27, according to data from Benzinga Pro.

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