"Citi maintains a Buy rating with a $115 price target and expects Netflix to deliver a 'modest beat and raise' quarter, aided by favorable currency moves. The firm anticipates Netflix will lift its full-year 2026 outlook, driven by higher prices and reduced acquisition-related expenses."
"JPMorgan's case centers on the pricing announcement. The firm estimates the increases could translate to an additional $1.7 billion in annualized revenue off the 2025 base. Critically, JPMorgan notes that while the increases came earlier than expected, much of the impact is already factored into Netflix's 2026 revenue guidance."
"Netflix raised U.S. subscription prices across all active tiers, with the Standard with Ads plan moving to $8.99 per month, Standard to $19.99 and Premium to $26.99. TD Cowen characterized the move as an '11% average increase across product tiers.'"
"The pricing power argument is grounded in Netflix's engagement dominance. The company captured a 9.0% share of U.S. TV time in December 2025, an all-time high, while logging 96 billion hours watched in H2 2025."
Citi and JPMorgan are optimistic about Netflix's upcoming Q1 earnings report, driven by recent price hikes. Citi maintains a Buy rating with a $115 price target, expecting a modest earnings beat supported by favorable currency effects and lower acquisition costs. JPMorgan estimates that the price increases could generate an additional $1.7 billion in annual revenue, with stable engagement and retention. Netflix's price adjustments across all tiers reflect an average increase of 11%, capitalizing on its strong market position and growing ad revenue.
Read at 24/7 Wall St.
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