Netflix (NASDAQ: NFLX) is back in focus on Wall Street after a fresh upgrade from Goldman Sachs, signaling renewed confidence in the streaming giant’s growth trajectory heading into its next earnings report.
Goldman Sachs analyst Eric Sheridan upgraded Netflix stock to Buy from Neutral on Monday, April 6, while raising the firm’s 12-month price target to $120 from $100. The new forecast implies roughly 21.6% upside from current levels.
The upgrade comes as Netflix prepares to report its Q1 earnings, with Goldman expecting results to reflect a strong start to 2026.
Netflix stock performance and recent pullback
Netflix shares closed at $98.66 on Thursday, gaining 3.25% on the day, but remain under pressure over a longer timeframe. The stock is down approximately 18% over the past six months, a decline that Goldman now sees as creating a more attractive entry point for investors.
According to Sheridan, the recent pullback has improved the stock’s overall risk-reward profile, particularly as the company continues to execute across its key growth drivers.
Strong content pipeline driving growth
Goldman Sachs expects Netflix’s upcoming earnings report on April 17 to highlight continued momentum in user growth and engagement, supported by a steady pipeline of original and returning content.
The firm believes that Netflix’s ability to consistently deliver high-performing content remains central to its competitive advantage in the global streaming market.
Netflix pricing power
Beyond content, Goldman points to several additional catalysts supporting Netflix’s outlook. The company’s pricing power remains a key lever for revenue growth, particularly as it continues to refine its subscription tiers.
At the same time, Netflix’s advertising-supported tier is gaining traction, opening up a new revenue stream that could significantly enhance monetization over time. Combined with potential capital return initiatives, these factors are expected to contribute to sustained earnings growth.
Netflix stock outlook for the next 12 months
With a refreshed Buy rating and a higher price target, Goldman Sachs joins a growing group of analysts turning more constructive on NFLX shares. The combination of improved valuation, strong execution, and multiple growth drivers positions the stock as one to watch closely in 2026.
As the company heads into its Q1 earnings report, investor attention will likely focus on subscriber trends, ad-tier performance, and forward guidance, all of which could play a key role in determining the next move for Netflix shares.
Featured image via Pexels/Anastasia Shuraeva
