Netflix Q2 Set to Impress? Analysts, Retail Traders Eye Outperformance on Rising Engagement and Price Hikes

Streaming giant Netflix, Inc. (NFLX), which has stayed resilient amid the Trump tariff turbulence, is set to report its quarterly results after the market closes on Thursday.

Netflix stock has gained over 40% this year, catalyzed by the company’s fundamental strength.

The company is expected to report second-quarter earnings per share (EPS) of $7.09 on revenue of $11.06 billion, according to consensus estimates compiled by Fiscal.ai. 

This compares to the year-ago numbers of $4.88 billion and $9.56 billion, respectively, and the previous quarter’s $6.61 billion and $10.54 billion. 

In mid-April, the company guided to 15.04% year-over-year revenue growth to $11.04 billion, citing benefits from recent price changes and continued growth in membership and advertising revenue.

Netflix guided to an operating margin of 33%.

The company ceased reporting membership metrics, effective as of 2025.

The Los Gatos, California-based company launched its ad tech platform in the U.S. on April 1, with an international unveil planned in a phased manner.

Netflix is facing a serious competitive challenge from Alphabet (GOOGL) (GOOG)-owned YouTube. A New York Times report stated that the rivalry between the two has shifted from adding subscribers to increasing the time spent viewing.

The Netflix stock snagged price target hikes from analysts, going into the earnings print, the Fly reported. Loop Capital increased its price target to $1,150 from $1,000 while remaining on the sidelines regarding the stock. The firm based its optimism on expectations of higher engagement driven by the recent release of “Squid Game 3”.

BMO Capital, which raised its price target to $1,425 from $1,200, said the company’s record-breaking Squid Game 3 viewership, forex and an attractive content slate for the second half of the year make it positive on the company. 

Analysts at the firm said Netflix shrugged off valuation concerns, as they expect the artificial intelligence (AI) tailwinds to continue proliferating, with multi-year benefits ahead, given the "hundreds of billions" of user interactions globally.

Looking ahead, the company currently expects 2025 revenue of $43.5 billion to $44.5 billion, premised on healthy member growth, higher subscription pricing and a rough doubling of ad revenue, partially offset by forex, net of hedging.

The consensus estimates call for EPS of $25.79 and revenue of $44.50 billion.

On Stocktwits, retail sentiment toward Netflix stock stayed ‘extremely bullish’ (83/100) by early Thursday, and the message volume slowed to a ‘normal level.’

With the stock trading at pricier levels, retail traders have been clamoring for a split. One watcher’s wishful thinking was for a 10:1 split. “I think it’s coming soon,” they said.

Another user said the Netflix stock has come back on their radar, adding that “Looking for a good long entry tomorrow or Friday.”

In the early premarket session on Thursday, the stock rose 0.49% to $1,256.45. The stock trades about 7% off its all-time high of $1,341.15, which it hit on June 30.

The Koyfin-compiled consensus price target for the stock is $1,231.31, suggesting 1.5% downside from Wednesday’s close.

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