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Netflix posts record profits but stock hits 2026 low on cautious 2027 outlook

Company Fundamentals
21 Oct 2026
Seeking Alpha
View Source
Bullish
Netflix posts record profits but stock hits 2026 low on cautious 2027 outlook

Netflix reported a highly profitable quarter with EPS up 49% and a 34.6% operating margin, alongside a record $4.8 billion stock buyback. Despite strong results, the stock dropped to a 2026 low due to a softer outlook for 2027, which includes a flat consensus growth of 6% distorted by a one-time $2.8 billion termination fee. Excluding this fee, earnings are expected to grow about 25%. At roughly 17 times 2027 earnings and a PEG ratio near 0.7, Netflix is valued cheaper on a growth-adjusted basis compared to peers like Microsoft and Disney. The analyst rates Netflix as a cautious buy, with potential to upgrade or downgrade based on January revenue guidance.

Netflix stock trades at USD 65.11 on Pluang as of Oct 21, 2026 23:31 WIB, down 5.17% for the day. The market cap stands at $286.02 billion with a strong 94% buy order activity. Despite the recent price drop, investors hold Netflix shares for an average of 127 days on the platform.

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