Zacks Investment Ideas feature highlights: Netflix

For Immediate ReleaseChicago, IL – October 21, 2025– Today, Zacks Investment Ideas feature highlights Netflix NFLX.Netflix Earnings Loom: Are You Still Watching?The Q3 earnings season is now in full swing following the release of the big banks' results, with the reporting docket remaining stacked for weeks. Results so far have been positive, with an above-average number of companies exceeding expectations.Below is a chart illustrating Q3 earnings expectations, actual results from recent periods, and expectations for upcoming periods. As we can see, Q3 earnings are expected to grow +6.5% on +6.4% higher revenues, continuing the growth trajectory of recent quarters nicely.On the docket this week is beloved Netflix, a company that has entirely changed its respective industry. NFLX shares have been big-time performers this year, outperforming on the back of consistently strong quarterly results that have revealed increasing demand for its lower-priced ad-supported tiers.What can investors expect from the titan? Let's take a closer look at a few key metrics.Netflix Has Ads Now?Netflix's ad-supported membership tiers were a big surprise to consumers initially, given its popularity for being ad-free, but the implementation has led to great results. A big crackdown on password sharing has also unlocked growth as it captures revenue from those sharing accounts.Ad-supported tiers reached 94 million monthly active users as of September, up from 70 million last November and clearly reflecting a very healthy level of consumer demand for lower-priced alternatives. Importantly, these ad-supported tiers provide a higher-margin revenue stream.The margins picture for the company has already been improving nicely.It's critical to note that strong ad sales in its latest period were a contributing factor to its current fiscal year guidance upgrade, further underpinning the momentum within the ad-supported tiers.Ad revenue will likely be the metric taking the biggest focus, but its recent foray into live sports can't be ignored either. Expect Netflix to spend considerable time on both topics, but the real growth driver behind the maturing company remains advertising.EPS and revenue expectations have largely remained stable over recent months, with Netflix expected to see 27% EPS growth on 17% higher sales. Management expects the coming Q3 results to be driven by growth in members, pricing, and advertising revenue.Bottom LineEntertainment titan Netflix is on the reporting docket this week, reflecting one of the most highly-watched releases. Commentary will likely center around its ad-supported tiers and its foray into live sports, both of which have opened further avenues of growth as the company continues to mature.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. 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Click to get this free report Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks