Netflix's Fundamental Positioning Remains Intact Despite Q4 Headwinds, UBS Says

12:55 PM EDT, 10/21/2026 (MT Newswires) -- Netflix's (NFLX) fundamental positioning remains intact despite some Q4 headwinds, with its industry-leading scale in the streaming industry, durable competitive moat, and substantial monetization runway, UBS said in a Tuesday note. The company reported Q3 earnings late Tuesday of $0.87 per diluted share on revenue of $12.87 billion. Analysts polled by FactSet expected EPS of $0.82 on revenue of $12.87 billion. For Q4, the company expects EPS of $0.67 on revenue of $13.44 billion. Analysts expect EPS of $0.73 on revenue of $13.52 billion. Netflix's Q3 revenue was in line with expectations, but Q4 guidance was softer due to one-time expenses, UBS analysts said. The company expects full-year 2026 revenue at the lower end of its prior guidance, impacted by weaker advertising revenue met of stronger subscription revenue, according to the note. The company acknowledged that its content execution in the US needs to improve, as this impacts global engagement and performance. Its moves include a focused approach to its core areas of film, TV and live, as well as hiring a new chief content officer with a history of strong talent relationships, the analysts said. UBS maintained the company's stock rating at buy and lowered the price target to $100 from $115. Price: 65.47, Change: -3.22, Percent Change: -4.69