Netflix‘s second-quarter results are in, and so are the first Wall Street verdicts. Several experts further pushed up their stock price targets on the streaming giant and increased financial forecasts after what was generally seen as a strong set of figures with no major surprises.
Netflix exceeded some key targets for the latest period and also boosted its full-year 2025 financial outlook, but some investors had hoped for an even bigger quarterly outperformance and stronger forecast by the streamer, leading to a muted stock reaction. After the stock closed Thursday’s trading session up 1.9 percent going into the earnings report, company shares were down 2.5 percent as of 8 a.m. ET on Friday before the market open.
Given all that, Wall Street’s focus is now shifting to the company’s performance in the back half of the year.
A raft of content debuting throughout the end of the year and the growth of the ad tier were therefore among the issues in focus for Wall Street experts as they assessed results and comments from management, including co-CEO Ted Sarandos.
“All Eyes on the Second-Half” was the headline of the post-earnings report by Bernstein analyst Laurent Yoon, in which he maintained his “buy” rating and $1,390 stock price target. “Netflix delivered an impressive 16 percent year-over-year revenue growth for the quarter, though it fell slightly short of elevated — but arguably justifiable — buyside expectations,” he wrote. “On its own, that might have made for a rough day for the stock. However, the company raised its full-year revenue and [earnings] guidance, leaving investors with mixed views. The stock gave back its intra-day gains in after-hours trading, and no doubt we’re all heading back to the models to reassess the outlook for the second half ’25, ’26, and beyond.”
With that said, “all eyes are on the second half, when Netflix typically drives the bulk of its member growth, fueled by its content slate and marketing,” Yoon concluded. “Anticipation around second-half
performance is likely to keep investors steady — or ready to buy the dip, should one emerge.”
William Blair analyst Ralph Schackart maintained his “outperform” rating, without a price target, and focused on similar themes in his report titled “Good Quarter, but Tough to Surpass High Expectations.” Netflix shares are up 42 percent year-to-date, “and expectations were high [going] into the quarter,” he noted. “In other words, an overall ‘good’ set of results and guide were not good enough for elevated expectations, in our view. The above-the-Street revenue guide was due in part to a weaker dollar.”
That said, Schackart remains bullish. “The outlook for Netflix remains positive in our view, with a strong slate, a broadening advertising platform, solid retention, price changes in line with expectations, and stable engagement,” he concluded. “Overall, Netflix remains well positioned to remain a secular streaming winner.”
Several peers on the Street, though, lifted their stock price targets on Netflix further following the latest set of results.
One of the biggest boosts came from MoffettNathanson analyst Robert Fishman, who maintained his “buy” rating on the company but pumped his stock price target $100 higher to $1,400. The title of his Friday report: “Netflix: The King of Streaming (Profits).”
“Due to the strength of Netflix’s remaining content calendar, as well as the continued growth of its ad tier monetization boosted by the shift to its in-house Netflix Ads Suite, we increase our 2025 revenue growth to 16 percent at $45.2 billion, the top end of raised full-year guidance of $44.8-$45.2 billion,” he wrote. “The higher revenues should continue to propel faster [earnings] growth, even with content amortization expected to accelerate.”
Fishman underlined his bullish stance with a YouTube comparison. “In the streaming wars, the two big winners — Netflix and YouTube — aren’t competing for a single spot. Instead, they’re playing different games,” he explained. “YouTube, [which] we recently named the ‘New King of All Media,’ is dominant in connected TV engagement, thriving on user-generated content. Meanwhile, Netflix leads in premium scripted original and licensed series and films, commanding higher margins and translating into even higher profits.”
Evercore ISI analyst Mark Mahaney also reiterated his Netflix rating on Friday, an “outperform,” while raising his stock price target from $1,350 to $1,375, citing “beat & raise second-quarter earnings results” in a report titled “On a Streaming Roll.”
“Upside was expected, and upside was delivered, thanks to foreign exchange, strong subscriber growth, and ad revenue ramping,” he wrote. “Fundamentals were impressive, with ex-foreign exchange revenue growth accelerating to 17 percent year-over-year and operating margin reaching a record high 34 percent, thanks largely to content cost leverage.”
Mahaney also cited three key takeaways. First, he highlighted: “Stable or accelerating revenue growth trends in every region, despite tougher comps, with the acceleration in U.S./Canada growth back to 15 percent the most important.” Second, on margin trends, he argued that “Netflix’s full-year operating margin guidance (30 percent) is likely conservative, but it also implies a lot of dry powder in the event of new marquis live event bidding opportunities.”
Third, Mahaney pointed out that new engagement disclosures show 1 percent growth in total viewing hours in the first half of 2025, “with a commitment to greater growth in the second half, non-English content amounting to a third of all viewing, and no title accounting for more than 1 percent of total viewing hours.” Concluded the analyst: “These disclosures suggest consistent engagement growth, broad global content appeal, and extreme diversity of content offerings.”
Guggenheim Securities analyst Michael Morris also lifted his stock price target, in his case by $50 to $1,450, while standing by his “buy” rating. In a report titled “Position of Strength,” he said “we expect the company will show stronger engagement growth in the second half and will look to further expand appeal in 2026 starting with live content available via the previously announced TF1 agreement in France, which we anticipate will be a template for additional deals.”
Morris then summarized his reasons for bullishness this way: “Importantly, we see the company pursuing growth opportunities from a position of strength that is rooted in industry leadership in content sourcing and distribution, which we expect will further strengthen with deeper local market expansion. Bottom line: if investors liked Netflix shares prior to earnings (which we did) we believe they should like the shares post-earnings (which we do).”
BMO Capital Markets analyst Brian Pitz reiterated his “outperform” rating and stock price target of $1,425. “With an attractive second-half 2025 global content slate across live, licensed, and originals, member growth, as well as the advertising ramp, remains healthy,” he argued.
The expert also discussed local content in international territories. “With localized content in over 50 countries and annual content spending exceeding $18 billion, the TF1 partnership in France is expected to yield positive results,” Pitz concluded. “We believe continued local content investments ensure ongoing engagement, growth, and limited churn levels.”
TD Cowen analyst John Blackledge stuck to his “buy” rating with his stock price target edging up from $1,440 to $1,450. “Management expects that second-half 2025 engagement growth will outpace first-half growth, supported by a strong second-half content slate which includes returning hits Wednesday season 2 and the Stranger Things finale,” he highlighted. “Following a solid U.S. upfront, Netflix is on track to reach their target of roughly doubling ad revenue year-over-year in ’25.”
CFRA Research analyst Kenneth Leon kept his “strong buy” rating on Netflix shares with a $1,485 stock price target. “Netflix is extending its global competitive advantage in streaming with pricing power, while benefiting from advertising shifts from linear networks to streaming providers,” he wrote. “We think the company’s ad tech platform will enable Netflix to capture more sponsor advertising over longer contracts, while its ‘local for local’ content strategy continues to deliver results globally.”
Concluded Leon: “With no tariff risks, attractive margins, and new growth drivers (including live programming), Netflix deserves a premium valuation.”
Pivotal Research Group analyst Jeffrey Wlodarczak remains the biggest Netflix bull on Wall Street, reiterating his Street high $1,600 stock price target and a “buy” rating. “’25 is Netflix’s biggest year ever for content and that content is heavily weighted to the second half, which includes Squid Game 3, Wednesday, Stranger Things and some big first-run movies (such as Happy Gilmore 2),” he noted.
“Our positive Netflix investment view remains unchanged that Netflix remains underpenetrated globally, offers an extremely compelling price to entertainment value (that is continually improving) boosted by their ad supported offering that should allow the company to continue to generate solid subscriber growth and average revenue per user growth,” he concluded, calling the streamer “the world’s dominant premium streaming entertainment service.”
Beyond Wall Street, experts also commented on Netflix’s latest results. “There are few surprises, as Netflix is now a well-oiled machine,” said PP Foresight analyst Paolo Pescatore. “Subscribers continue to sign up, and it churns out successful shows that drive engagement. All of this, coupled with price rises, will drive revenue higher.”
He emphasized though that “advertising still remains a key strategic goal and one that will take a bit longer to crack.” That said, Pescatore highlighted: “Its strong content slate puts it in a far stronger position compared to rivals. The latest engagement report reinforces that the data is TV gold for brands and advertisers.”
Scott Purdy, U.S. media industry lead, strategy, at KPMG U.S., put the Netflix results into broader industry trends. “Standout content still drives massive engagement, but the real winners aren’t just capturing attention, they’re using their brand and their scale to monetize it.”
And he touched on possible AI upside, concluding: “AI may become the new competitive advantage to drive customization, engagement, and efficiency, while ad-supported models are hitting their stride with both viewers and advertisers as subscriber counts enter the rear view.”