Netflix Stock Falls 25% After April 17 Earnings Update — Nflx Stock
Netflix's nflx stock has fallen roughly 25% since the company's April 17 earnings release, after investors focused on its cautious full-year 2026 revenue guidance. The company reported $12.25 billion in revenue and EPS of $1.23, both above Wall Street's revenue expectation of $12.17 billion.
The stock slide began after the April 17 update and tracks with management's decision to keep full-year revenue growth guidance at 12% to 14% and operating margin guidance at 31.5%. Wall Street's 12-month average price target still implies more than 41% upside from the current level.
April 17 Netflix earnings
Netflix said the quarter produced $12.25 billion in revenue, compared with the $12.17 billion Wall Street expected. EPS came in at $1.23. The market response turned negative after the release, with the shares losing value from that point forward.
The sharper reaction came from the company’s full-year view. Management left its 2026 revenue growth target at 12% to 14% and held operating margin guidance at 31.5%, a combination that gave investors less to work with than the quarterly beat alone.
June 4 Bernstein view
Bernstein SocGen Group reiterated an Outperform rating on Netflix on June 4 and set a $110 price target. That call came after the decline was already underway and sat alongside a broader view that the average analyst target still points to more than 41% upside.
The gap between the stock’s roughly 25% drop and that target spread leaves investors with two different readings of the same report: a weak near-term market reaction, and a still-positive long-term valuation case. Netflix remains a subscription service with original content and ad-free and ad-supported viewing across devices.
Netflix viewership share
Management said Netflix holds 5% of global TV viewership share. That leaves room for growth, but the quarter showed that the market is judging the company first on the pace of revenue expansion it laid out for 2026.
For investors tracking nflx stock now, the main focus is no longer the April beat. It is whether Netflix can turn its ad tier and live sports efforts into faster revenue growth than the guidance it kept in place.
