Netflix Stock Drops Ahead of Earnings Report

NEW YORK, NY — October 01, 2025 — Netflix Inc. (NFLX) closed the most recent trading day at $1,170.90, seeing a decrease of 2.34% from the previous session. This drop comes as the broader market showed mixed results, with the S&P 500 gaining 0.34% while the Dow added 0.09% and the Nasdaq saw a 0.42% increase.

The decline in Netflix’s share price follows a 1.25% decrease over the past month, which contrasts with the Consumer Discretionary sector’s loss of 0.7% and the S&P 500’s increase of 3.54%. Investors are closely watching Netflix’s upcoming earnings report, scheduled for release on October 21, 2025, which is a key indicator of the company’s performance.

Analysts predict that Netflix’s earnings per share (EPS) will reach $6.88, marking a 27.41% increase compared to the same quarter last year. Revenue for the quarter is expected to be around $11.52 billion, reflecting a 17.3% rise year-over-year. The full-year estimates are optimistic as well, projecting earnings of $26.06 per share and revenue of $45.03 billion.

Recent changes to analyst estimates reflect shifting dynamics in Netflix’s business. Positive revisions can be a sign of optimism for the company’s future. The Zacks Rank system, which evaluates these estimate changes, currently rates Netflix as a #4 (Sell), with an average annual return of +25% for top-ranked stocks since 1988.

In terms of valuation, Netflix’s Forward P/E ratio stands at 46.01, a significant premium over the industry average of 30.9. The company’s PEG ratio, which considers earnings growth, is at 2.02. This suggests that while Netflix may offer growth potential, it is trading at a higher valuation than many of its peers in the Broadcasting Radio and Television industry, which ranks in the bottom 29% of all industries.

Investors have a wealth of resources available, including metrics and analysis on Zacks.com, to make informed decisions as the market awaits more information about Netflix during the upcoming earnings call.