Boasting a market cap of $563 billion, Netflix, Inc. (NFLX) is a global streaming giant that offer a vast library of TV shows, movies, and original content through a subscription-based model. With a presence in over 190 countries, the company drives growth through heavy investments in exclusive content, expansion into gaming, and strategic pricing models, including an ad-supported tier. The company is set to release its second-quarter earnings after the market closes on Thursday, July 17

Ahead of the event, analysts expect Netflix to report an adjusted profit of $7.05 per share, up 44.5% from $4.88 per share reported in the year-ago quarter. The company’s earnings surprise history is solid, as it surpassed Wall Street’s bottom-line estimates in all of the past four quarters. 

For fiscal 2025, Netflix’s adjusted EPS is expected to increase 27.7% year-over-year from $19.83 in fiscal 2024 to $25.32. In fiscal 2026, its earnings are expected to grow 20.9% year-over-year to $30.60 per share.

NFLX stock prices have soared 93.3% over the past year, significantly outperforming the S&P 500 Index’s ($SPX) 12.6% returns and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 24.6% surge during the same time frame.

Netflix has outperformed the broader market over the past year due to its strong subscriber growth, solid financial performance, and continued global expansion. In 2024 alone, the company added 41 million new users, ending the year with nearly 302 million subscribers, despite announcing it would no longer publicly report those figures moving forward. 

While competition in the streaming space remains intense, Netflix maintains a leading position, capturing 7.5% of total U.S. video viewing time, second only to YouTube. With this sustained momentum, Netflix is increasingly viewed as a stronger contender among the "Magnificent Seven" tech giants, especially as companies like Tesla, Inc. (TSLA) struggle to regain footing.

However, NFLX shares dropped more than 1% on May 19, after JPMorgan Chase & Co. (JPM) downgraded the stock from "Overweight" to "Neutral." 

The consensus opinion on NFLX is reasonably bullish, with an overall “Moderate Buy” rating. Out of the 45 analysts covering the stock, 28 recommend “Strong Buy,” three advise “Moderate Buy,” and 14 suggest “Hold.”

While NFLX currently trades above its mean price target of $1,196.17, the Street-high target of $ 1,600 indicates a potential upswing of 20.9% from the current market price.