Sep. 18 at 4:58 AM
$NFLX Advertising is probably the biggest incremental bull argument. Netflix expects approximately
$3B of advertising revenue in 2026, roughly double the prior year, and its advertiser base has reportedly risen more than 70%. The company is expanding programmatic inventory and AI-supported advertising tools. If advertising keeps scaling without comparable increases in content costs, it can become an increasingly meaningful contributor to margins.
Then there is capital return. Netflix repurchased approximately
$4.7B of shares in Q2 alone, its largest quarterly repurchase, and had about
$27.1B of authorization remaining. Management also maintained roughly
$12.5B of 2026 free-cash-flow guidance. Large FCF combined with aggressive repurchases can accelerate EPS growth even when revenue growth settles into the low teens.
