Netflix (NFLX) issued guidance for its Q2 revenue and earnings that missed several estimates from Wall Street, causing shares to skid 10%. Q2 revenue is expected to come in at $12.57 billion, compared to the $12.64 billion Wall Street estimated. Earnings per share guidance for the second quarter was $0.78, below the $0.84 per share the Street was expecting. The company’s operating income outlook of $4.11 billion is also well below the $4.34 billion the Street anticipated.

Additionally, Netflix only repurchased $1.3 billion of its stock in the first quarter, a slower pace than the $2.3 billion quarterly average in 2025. This sparked investor concerns and helped lead to the further 10% NFLX skid. Co-CEO Greg Peters tried to settle those fears on Netflix’s earnings call, saying, “Of course, it’s early in the year. There’s still plenty of time to go, plenty of work left to go do.” “We’ve seen really good progress so far in this first quarter that builds on the solid momentum and results from 2025,” Peters added. Furthermore, executives told Wall Street on its earnings call that there are no changes to its capital allocation program, despite their positivity around new podcasts, vertical videos, and live events. About $6.8 billion remains for repurchase under Netflix’s authorization.

As for Q1 2026, Netflix reported revenue of $12.25 billion, compared with the Street’s $12.17 billion estimate, per Bloomberg consensus data. In the first quarter of last year, the company reported revenue of $10.54 billion. Adjusted earnings per share came in at $1.23, compared to estimates of $0.76. Looking ahead to the rest of the year, despite today’s skid, NFLX stock forecasts remain high.

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The median forecast on Wall Street for Netflix (NFLX) is $115, implying a 19% climb from the current price of $96. Most analysts, including Oppenheimer and Guggenheim, hold a positive view with Outperform and Buy ratings, respectively. Bernstein offers a significantly higher price target of $139. Lastly, Freedom Broker recently upgraded their rating to Buy with a price target of $104. Guggenheim has reiterated their Buy rating with a $120 target, maintaining a positive outlook.