Netflix’s (NASDAQ: NFLX) Q3 Revenue Growth Expected to Hit Four-Year High

Streaming giant Netflix (NASDAQ: NFLX) is poised to announce its third-quarter 2025 earnings today, with revenue growth projected to reach its highest level in over four years. The company’s financial results and strategic ventures are under close scrutiny from the markets.

NFLX Price Targets

At the time of writing, NFLX’s stock price stands at $1,236.43, a slight decrease of 0.17% or $2.13 from the previous day’s close. The intraday volume is 1,249,218, with a high of $1,248.38 and a low of $1,231.67.

Analysts anticipate NFLX to report revenue of $11.51 billion and adjusted earnings per share (EPS) of $6.97 for Q3 2025. The company’s own forecast projects revenue of $11.53 billion and EPS of $6.87 for the same period. This represents a 17% year-over-year revenue increase, fueled by growth in membership, pricing, and advertising revenue. For the full year 2025, Netflix has raised its revenue forecast to between $44.8 billion and $45.2 billion, reflecting 15%-16% year-over-year growth. In its last quarterly letter to investors, Netflix stated that it expects revenue growth of 17% (on both a reported and F/X neutral basis) driven by growth in members, pricing and advertising revenue.

The success of original content, particularly the film “KPop Demon Hunters,” has significantly contributed to Netflix’s revenue growth. The film’s popularity has led to a re-release in select AMC Theaters, indicating strong audience demand.

Netflix’s ad-supported tier has attracted over half of new subscribers, reaching 94 million users by May 2025. However, the revenue contribution from this tier remains modest, with analysts estimating it to bring in $662.3 million in Q3. Additionally, Netflix’s investment in gaming, including titles like “GTA: San Andreas” and “Squid Game: Unleashed,” has resulted in less than a 0.5% increase in user engagement over four years.

Analyst opinions are mixed. Loop Capital upgraded NFLX to Buy from Hold with a price target of $1,350, citing exceptional engagement and a strong content slate. Loop increased its long-term margin assumptions for Netflix, saying each dollar of content is generating more revenue, which powers higher earnings and free cash flow. Seaport Research also upgraded Netflix to Buy from Neutral, with a price target of $1,385, highlighting moderated stock momentum and continued market share gains. However, Phillip Securities downgraded Netflix to Sell from Neutral, maintaining a price target of $950, due to concerns over valuation and declining engagement per viewer, which may be a drag on the company’s advertising revenue amid high expectations.

Netflix Analyst Summary

The US markets will be closely watching Netflix’s Q3 earnings report and the subsequent live video interview with company executives for insights into the company’s growth strategies, particularly in advertising and gaming, and their projected impact on future performance.