Netflix Exits Warner Bros Deal, Forecasts $0.76 EPS on $12.1B Revenue
Netflix is forecast to report 76 cents EPS on about $12.1 billion revenue in Q1, after exiting its multi-billion dollar Warner Bros deal and delivering 15% year-over-year growth. Options traders expect a 7% swing and analysts lift price targets to $115-118, highlighting pricing hikes, ad-supported tiers and live-event expansion.
1. Q1 Earnings Estimates
Netflix is set to report first-quarter earnings with analysts expecting about $0.76 earnings per share on approximately $12.1 billion in revenue, reflecting roughly 15% year-over-year growth. The company has paused subscriber disclosures, shifting focus to profitability and ad-supported tier performance across its 320 million global memberships.
2. Post-Warner Bros Deal Strategy
Following termination of its multi-billion dollar content pact with Warner Bros Discovery, Netflix is ramping up content investment and exploring live-event programming such as BTS concerts and the World Baseball Classic to diversify revenue streams. Pricing adjustments implemented earlier this year aim to boost average revenue per user and support its ad-tier expansion.
3. Market Reaction and Analyst Targets
Options traders are positioning for a potential 7% post-earnings stock swing, above the four-quarter average move of 4.7%. Several analysts have raised price targets into the $115-118 range, citing sustained demand for premium content, pricing power and growth in advertising revenue.