Netflix and Intel are set to report earnings this week, with investors closely watching both companies for confirmation of their growth and turnaround narratives, according to Zavier Wong, Market Analyst at eToro.
Netflix
Netflix enters the earnings period having firmly established itself as the world’s largest streaming platform, with more than 300 million subscribers globally. Supported by a strong content pipeline and increasing pricing power, the company’s long-term ambition to exceed 400 million subscribers by 2030 appears increasingly achievable.
However, recent market performance has been less supportive. Over the past six months, Netflix shares have declined by more than 30%, reflecting broader market volatility and investor caution. Adding to uncertainty is Netflix’s proposed US$83 billion acquisition of Warner Bros Discovery’s studio and streaming assets, which has raised questions around regulatory approval and balance sheet impact.
Despite these concerns, Netflix’s upcoming results are expected to be solid. A strong content slate during the quarter, including the finale of Stranger Things, the Jake Paul versus Anthony Joshua fight, and NFL Christmas Day games, is likely to support double-digit revenue growth. Analysts also expect continued margin expansion and healthy free cash flow generation, reinforcing Netflix’s shift toward a more mature and profitable operating model.
“With near-term results likely to be resilient, investor focus will quickly move to guidance for 2026,” said Zavier Wong, Market Analyst at eToro. “The market is looking for at least 13% revenue growth for the year ahead. Any guidance materially below that level could raise concerns about longer-term growth.”
With the US and Canada now largely saturated, international markets will be closely watched. Subscriber growth outside North America is becoming increasingly important, not only for headline user numbers but also for future monetisation. Netflix has been expanding its investment in locally produced content and is increasingly leveraging advertising to drive scale in emerging and international markets.
Advertising is now a central part of Netflix’s evolving business model. The continued rollout of its ad-supported tier, alongside paid sharing initiatives, is expanding the company’s addressable market. Advertising revenue is expected to reach around US$5 billion in 2026, according to market estimates. Investors are also looking for further margin expansion next year, which would support free cash flow growth and ongoing share buybacks.
The proposed acquisition of Warner Bros Discovery’s studio and streaming assets remains a key wildcard. While the deal could significantly strengthen Netflix’s content library and intellectual property portfolio, regulatory risk and a materially higher debt load remain potential overhangs. This is particularly relevant given that Netflix has only recently established a clear and credible path to sustainable profitability.
Intel
Intel heads into earnings as one of the strongest performers on the S&P 500 this year, with shares up more than 30%. The rally reflects renewed investor confidence in the company’s turnaround strategy, alongside continued growth in global demand for artificial intelligence technologies.
It also highlights a broader shift in market dynamics within the semiconductor industry, where supply constraints are increasingly becoming a key limiting factor. Towards the end of 2025, Intel benefited from several positive developments, including the US government taking a stake in the company and the strengthening of partnerships with major industry players such as Nvidia.
“These developments provide financial support and reinforce Intel’s strategic importance within the US semiconductor ecosystem,” Wong added. “Investors will be looking for further detail on how these partnerships translate into execution and long-term competitiveness.”
In the near term, Intel’s gross margins are expected to remain under pressure, largely due to early ramp-up costs associated with its advanced 18A manufacturing process. Any indication that margin pressure is stabilising would be welcomed by the market, particularly if accompanied by continued discipline in capital expenditure to preserve balance sheet flexibility.
Looking beyond the current quarter, Intel’s relevance to the AI investment theme is gradually improving. As demand for AI chips continues to accelerate, capacity constraints at leading foundries are emerging as a bottleneck for the industry. This creates an opportunity for Intel Foundry Services to play a more meaningful role in the global semiconductor supply chain.
Options markets are currently pricing in an approximate 8% move in Intel’s share price following the earnings release, pointing to expectations of elevated volatility. Consensus forecasts call for quarterly revenue of US$13.4 billion and earnings per share of US$0.08. Investors will be looking for clear evidence that Intel’s manufacturing roadmap is translating into sustainable operational momentum.
