Netflix, Inc. (NFLX)
Netflix is the world's leading streaming service, providing a vast library of films, series, and games to subscribers across the globe.
Is Netflix, Inc. a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Strong brand recognition and global reach. Worth weighing: High cost of producing original content.
Is this normal for this company?
Each figure against the range this same company has produced recently. Neither end of a range is the good end.
Share price divided by the earnings actually reported over the four most recent quarters. The range is the same calculation at each of this company's last few results, so roughly the past year.
Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.
How these ranges are built
Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.
What does Netflix, Inc. do?
Netflix makes its money by charging monthly subscription fees for access to its platform, which features both licensed content and its own original productions. It has shifted its focus from simply chasing new subscribers to finding ways to make more money from its existing user base, such as through advertising and paid account sharing. What really moves the needle here is whether they can fund expensive hit shows and still keep subscriber numbers climbing in a crowded market.
On our factor screen it looks strongest on quality and growth, and weakest on momentum.
- !Pays no dividend - the whole return rides on the share price
- ✓Growing - revenue up about 13% over the year
- ✓Very profitable - turns about 28% of sales into profit
- ✓Strong return on shareholder money (ROE 50%)
- Quality screens high
- Momentum screens low
- Income screens low
Does Netflix, Inc. pay a dividend?
No - Netflix, Inc. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.
Does Netflix, Inc. have more cash or more debt?
It holds about $9.13B in cash against about $16.65B of debt - so it has net debt of about $7.53B. Debt is not automatically a problem - it funds growth - but it has to be serviced and repaid, which matters more when profits wobble.
From the latest reported balance sheet. Cash and debt levels change, and some borrowing is normal - this is context, not a judgment.
What do Netflix, Inc.'s numbers mean?
How has it performed?
Growth of £1,000, the worst fall, and year by year
Over about 2 years to 2026-09-11. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Netflix, Inc. actually fallen?
Over the last 2 years of daily prices, Netflix, Inc. fell as much as −50% from a high to a later low. Falls like this are normal when you own a share.
Past falls are not a forecast - it can fall further, or recover.
How has it done year by year?
Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.
A closer look at the numbers
Ownership, earnings history, where the money goes, and the outlook range
Does the share price tell you if it's cheap or expensive?
Who owns Netflix, Inc.?
About 86% of Netflix, Inc., or about 86 in every 100 shares, is held by big institutions such as pension and index funds, and company insiders hold about 1%. The rest, roughly 13%, is held by the public and smaller investors.
What this does and doesn't tell you
This is a recent snapshot of the share register, and it moves. We don't read anything into who owns what - a high institutional share is common for any large listed company and is not a signal about it.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
How much money does Netflix, Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Where does each £100 of Netflix, Inc.'s sales go?
A rough split of the latest full-year figures: of every £100 of sales, about £51 covers making the product or service, £21 goes on running costs, tax and interest, and about £28 is left as profit. Margins vary a lot by industry, and one-off items can distort a single year.
When does Netflix, Inc. report earnings, and how did recent quarters go?
Netflix, Inc. is next scheduled to report on about 2026-10-20 - dates can move, and we don't predict results; this just tells you when to look.
‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-16 | $0.79 | $0.80 | Beat +1% |
| 2026-04-16 | $1.32 | $1.23 | Missed -7% |
| 2026-01-20 | $0.55 | $0.56 | Beat +1% |
| 2025-10-21 | $0.70 | $0.59 | Missed -16% |
| 2025-07-17 | $0.71 | $0.72 | Beat +2% |
| 2025-04-17 | $0.57 | $0.66 | Beat +16% |
Across the last 6 quarters here, Netflix, Inc. came in ahead of what analysts expected 4 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Where these figures come from
Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.
What are the scenarios for Netflix, Inc.?
An illustrative range for the year ahead — not a prediction or a price target.
What are the pros, cons and common questions?
The case each way, and the questions people ask
Netflix becomes the dominant global entertainment utility.
Market saturation and loss of pricing power to cheaper rivals.
What are the pros and cons of Netflix, Inc.?
A balance check, not a score or verdict.
- Strong brand recognition and global reach
- High profit margins compared to many peers
- Proven ability to adapt its business model
- High cost of producing original content
- No dividend payments for shareholders
- Significant competition from other media giants
- Potential for subscriber churn if content quality dips
- Regulatory changes regarding data and advertising
- High share price sensitivity to market sentiment
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained decline in global subscriber numbers
- A major shift in consumer preference away from streaming services
Common questions about Netflix, Inc.
Does Netflix, Inc. pay a dividend?
No - Netflix, Inc. does not currently pay a dividend, so the return would rest on the share price. Many growing companies reinvest profits instead of paying them out.
When does Netflix, Inc. report earnings next?
Netflix, Inc. is next scheduled to report results on about 2026-10-20. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.
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This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.