In "Major Banks," China International Capital Corporation lowered the target price for Netflix to $110, facing significant uncertainty this year

CICC published a report stating that Netflix (NFLX.US) announced its Q4 2025 performance, with revenue of $12.051 billion, a year-on-year increase of 17.6%; operating profit of $2.957 billion, a year-on-year increase of 30.1%. The company's operating profit slightly exceeded the firm's expectation of $2.859 billion, mainly due to continued operational leverage.

The report indicated that due to Netflix's expected increase in investment and significant acquisition costs in 2026, the firm has lowered its 2026 net profit forecast by 3.1% to $13.489 billion and introduced a 2027 net profit of $15.972 billion. The "Outperform" rating remains unchanged, with a corresponding target price adjustment of 8% to $110, corresponding to 35 times and 30 times the 2026 and 2027 GAAP P/E, respectively, while the current price trades at 28 times and 24 times the 2026 and 2027 GAAP P/E.

Additionally, the firm believes that although the company's valuation has continued to adjust recently, there may still be considerable uncertainty suppressing 2026: 1) the debate in the market over whether the company's increased content investment is a proactive move or a passive defense; 2) the impact of the Warner Bros. acquisition on the company in terms of regulation and performance; 3) the smoothness of the company's business integration with Warner Bros. It is recommended to pay attention to the progress of related matters