Netflix (NFLX) investors have factored in a "modest earnings beat" and an upward revision to the company's 2025 guidance ahead of the release of Q2 results, Wedbush said in a note Monday.
The firm said investors are expecting Q2 earnings per share of around mid-$7 compared with its estimate of $7.18, consensus of $7.06, and guidance of $7.03, while revenue is expected to be in the range of $11.2 billion to $11.3 billion compared with Wedbush's estimate of $11.16 billion, consensus of $11.04 billion and guidance of $11.035 billion.
Investors are also expecting the company to increase its 2025 revenue guidance by $500 million to a range of $44 billion to $45 billion, compared with Wedbush's projection of $45 billion and consensus of $44.5 billion, according to the note.
"Expectations are rather high given various positive data points throughout the quarter," Wedbush analysts said.
The firm reiterated that ad tier is expected to drive revenue growth in 2026 by adding live events, improving advertising solutions and targeting capabilities.
Wedbush maintained its outperform rating on the stock along with a price target of $1,400.
Shares of Netflix were up more than 1% in recent trading Monday.
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