Netflix Inc (NASDAQ:NFLX) is scheduled to report its first-quarter results on Thursday.

The streaming platform — known for such hits as “Stranger Things” and “XO, Kitty” — could report quarterly results exceeding its guidance and could double its advertising revenues this year, according to Wedbush analyst Alicia Reese.

The Netflix Analyst: Reese maintained an Outperform rating, while raising the price target from $115 to $118.

The Netflix Thesis: The company could report first-quarter revenues of $12.22 billion and earnings of 77 cents per share, beating its guidance of $12.157 billion and 76 cents per share, respectively, Reese said in the note.

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For the fourth quarter of 2025, Netflix had reported:

  • Revenue of $12.05 billion
  • Earnings of 56 cents per share

The company's operating profits grew by 30% and net income came in at $10.98 billion, with total subscribers surpassing 325 million. Management had guided to a 2026 revenue of $51 billion, representing 14% growth.

Netflix appears well-positioned for "substantial growth in global advertising," while its latest price hikes could "provide a meaningful boost to profitability this year," the analyst stated.

Netflix Ad Strategy

Wedbush's proprietary survey indicated that average revenue per member could increase beginning in the second quarter of 2026, backed by the price hikes and Netflix's improving advertising strategy, she added.

"Netflix's low churn rates are significant, particularly for advertisers, driven by the variety, quality, and depth of content," the analyst further wrote.

Despite some overhang from resistance to price hikes in Europe, the company "should continue to gain incrementally from its ad business by expanding partnerships, improving targeting, leveraging AI, and adding more live content," Reese said in the note.

She expects ad revenues to at least double to $3 billion in 2026, with opportunities to grow in 2027 and beyond.

"We remain positive on Netflix's overall opportunity to expand revenue in 2026 on both domestic subscription pricing and advertising revenue, while continuing to expand its global footprint," the analyst wrote.

NFLX Price Action: Shares of Netflix had declined by 0.16% to $102.84 at the time of publication on Monday.

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