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Netflix NFLX shares have shown a nice level of relative strength in 2025, gaining 5% compared to the S&P 500’s 8% decline. It’s worth noting that shares are decently insulated from the ongoing tariff talks, though the company is reliant on a healthy consumer.
The stock has quietly been red-hot over the past year in general, gaining 50%. It seems that the AI frenzy took many eyes off the once-beloved stock, unable to find inclusion in the polarizing Magnificent 7 group either.
Image Source: Zacks Investment Research
Notably, the streaming titan is on deck to report quarterly results this week, likely reflecting the most popular on the reporting docket. Let’s take a closer look at how the company currently stacks up and what to expect.
Netflix Earnings
Though down roughly 4% from what was expected in mid-January, the revisions picture for NFLX’s upcoming print has remained stable since, with the current $5.74 Zacks Consensus EPS estimate suggesting 8.7% year-over-year growth.
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Sales expectations have largely remained positive, with the $10.5 billion expected up marginally since January and reflecting a 12.5% pop from the same period last year. The company overall continues to be a growth machine, with ad-supported plans providing many benefits over recent periods.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Continued member growth continues to be a massive tailwind, with the company exceeding our expectations concerning paid membership additions in each of its last six periods. As mentioned above, ad-supported plans and crackdowns on password sharing have aided the company significantly, enabling it to capture lower-income consumers while also expanding its base.
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Are Netflix Shares Expensive?
Netflix shares presently trade at a 35.4X forward 12-month earnings multiple, which compares to a 33.8X five-year median and a steep 72.1X five-year high. The current PEG ratio works out to 1.8X, again above the 1.5X five-year median but a fraction of 3.9X five-year highs.
The current 35.4X forward 12-month earnings multiple reflects an 80% premium relative to the S&P 500, with the stock also carrying a Value Style Score of an ‘F’.
Our current consensus expectations suggest 23% EPS growth in FY25 and 21% in FY26, helping to explain the elevated multiples.
Image Source: Zacks Investment Research
Bottom Line
Netflix NFLX shares have been quietly strong over the past year thanks to strong quarterly results stemming from successful efforts that include a password sharing crackdown and ad-supported membership plans.