News · Netflix, Inc. (NFLX) · Communication Services

Netflix falls 1.8% after mixed post-earnings guidance and steady trading

Session of October 23, 2026 · Published October 24, 2026 · 3 min read

What happened

Netflix (NFLX) fell 1.8% to $65.85 on October 23, 2026, as investors weighed management's weaker advertising and fourth-quarter revenue guidance following the company's recent results. The move was an ordinary session for the stock; trading volume was modest at 0.9 times its 20-day average. The S&P 500 fell 0.5% on the day, and the Communication Services sector median fell 1.0%, leaving Netflix 0.8 percentage points worse than the sector median.

Closing price over the last 30 trading sessions. On October 23, 2026, NFLX closed at $65.85, down 1.8% on the day and 18.0% lower than 30 sessions earlier.

How big was the move

The decline equated to 0.8 times a typical daily move for this stock, indicating a normal-sized session rather than an unusually volatile one. Netflix opened 0.1% below the previous close and finished the day down 1.8%. Over the last five sessions the stock fell 6.6%, while the S&P 500 over five sessions fell 0.5%. Trading volume near its 20-day average suggests investors were trading on typical flows rather than in response to a large, new catalyst.

Each bar is one day's price change; the outlined bar is October 23, 2026. A typical daily move over the past year was 2.3%, so the latest move equals 0.8 times that. Moves outside the dashed lines (about 4.7%) are unusual.

The technical picture

Technically, the stock sat below its key moving averages, trading 4.8% below its 20-day moving average, 11.3% below its 50-day moving average and 20.0% below its 200-day moving average. The 50-day average was below the 200-day average, a sign of a weak longer-term trend. Netflix was 43.6% below its 52-week high and its one-year return fell 41.0%, trailing the S&P 500 by 54.8 percentage points over the same period. Momentum indicators were muted: the Relative Strength Index (14 days) read 37, inside a neutral range between 30 and 70, and 60-day volatility was 35% annualized, lower than 52% of its own readings over five years. Those readings suggest the stock has drifted lower over recent months without the elevated volatility that often accompanies panic selling.

Closing price over the past year. NFLX ends the period 43.1% below its 52-week high, below its 50-day average ($74.27) and below its 200-day average ($82.27).

Fundamentals and valuation

On the fundamentals front, Netflix reported revenue of $49.73 billion for the four quarters through September 30, 2026, up 14.7% from a year earlier, and diluted earnings per share of $3.46, which rose 44.2% versus the prior year. Gross margin improved to 50.7% from 48.1% a year earlier, and operating margin widened to 31.3% from 29.1%. Free-cash-flow margin stood at 22.9% and return on invested capital was 24.3%. The balance sheet showed net debt of 0.2 times EBITDA and share count decreased by 3.3% over one year.

Quarterly revenue by period end. The latest quarter brought $12.9B, 11.8% more than the same quarter a year earlier.

Valuation measures place the stock at 19.0 times trailing earnings and 18.3 times expected forward earnings, with a free-cash-flow yield of 3.9%. The price-to-trailing-earnings reading was lower than 95% of its own readings over the past five years, versus a five-year median of 38.4 times earnings. Those figures reflect a mix of strong underlying profitability and a much lower multiple than the stock carried in its recent history. Market value stood at $293.68 billion.

PromtFinance scores rank Netflix positively for Growth at 73 and Quality at 76, with Revisions at 85, while Momentum scored 17, indicating very weak momentum within the sector. The combination points to solid operating performance and analyst optimism on fundamentals, but limited price momentum to support near-term gains.

Earnings and analyst expectations

Netflix last reported on October 20, 2026, posting earnings per share of $0.87 against $0.82 expected, 6.1% above estimates. The company has beaten estimates for four consecutive quarters, with an average surprise of 17.6% above estimates over the last four reports. Typical two-day reactions after recent reports saw the stock rise 0.4%. The next scheduled earnings report is January 19, 2027.

Diluted earnings per share by quarter. The latest quarter shows $0.87, against $0.59 in the same quarter a year earlier.

Analysts maintain a consensus rating of Buy based on 100 analysts, with 64% of ratings as Buy or Strong Buy. The consensus price target stood at $90.90, which was 38.0% above the closing price on October 23, 2026. That gap highlights a divide between near-term investor caution and longer-term analyst expectations.

What to watch

October 20, 2026: Netflix reported third-quarter results showing revenue growth of 11.8% and an operating margin of 34.6%, but management issued weaker advertising and fourth-quarter revenue guidance. (reported by Zacks Investment Research and The Motley Fool)
January 19, 2027: next scheduled earnings report.
Consensus price target of $90.90, 38.0% above the closing price on October 23, 2026.
Share count decreased by 3.3% over one year.

Full NFLX analysis: scores, chart and financials →