Overview
- Netflix shares have rebounded about 24% in recent sessions after the company declined to match Paramount’s higher bid for Warner Bros. assets.
- JPMorgan projects a roughly 32% operating margin in 2026, with revenue and operating income CAGRs of about 12% and 21% through 2028.
- Free cash flow is forecast at around $11 billion in 2026 with roughly 22% annual growth, supporting stronger cash generation.
- Analysts expect increased share repurchases in 2026, aided by the $2.8 billion termination fee from the scrapped Warner pursuit.
- Advertising revenue grew more than 150% in 2025 and is projected to approach $3 billion in 2026, as engagement trends remain steady and JPMorgan argues Netflix is better insulated from AI risk.