Netflix, Intel Earnings to Test Growth and Turnaround Hopes

Abu Dhabi, United Arab Emirates – January 20, 2026:

Netflix and Intel are set to release their latest earnings results this week, with investors closely tracking both companies for validation of their respective growth and turnaround narratives, according to Zavier Wong, Market Analyst at eToro.

Netflix

Netflix enters the earnings season firmly positioned as the world’s leading streaming platform, boasting a global subscriber base exceeding 300 million. Backed by a robust content pipeline and increasing pricing power, the company’s long-term objective of surpassing 400 million subscribers by 2030 is increasingly viewed as attainable.

Despite these structural strengths, Netflix’s share price performance has been under pressure. Over the past six months, the stock has fallen by more than 30%, reflecting broader market volatility and heightened investor sensitivity toward valuation and execution risks. Adding to uncertainty is Netflix’s proposed US$83 billion acquisition of Warner Bros Discovery’s studio and streaming assets, a move that has sparked debate around regulatory approval, integration challenges, and the potential impact on the company’s balance sheet.

Nevertheless, Netflix’s near-term operating performance is expected to remain resilient. A strong content slate during the quarter — including the highly anticipated finale of Stranger Things, the Jake Paul versus Anthony Joshua boxing event, and exclusive NFL Christmas Day games — is likely to support double-digit revenue growth. Analysts are also forecasting continued margin expansion and solid free cash flow generation, reinforcing Netflix’s transition toward a more mature, profitability-driven business model.

“With near-term results likely to be resilient, investor attention will quickly shift to management’s outlook for 2026,” said Zavier Wong, Market Analyst at eToro. “The market is broadly looking for revenue growth of at least 13% next year. Any guidance materially below that threshold could raise concerns about the durability of Netflix’s longer-term growth trajectory.”

With the US and Canadian markets largely saturated, international expansion remains a critical growth lever. Subscriber additions outside North America are increasingly important, not only for headline growth but also for future monetisation. Netflix continues to scale its investment in locally produced content while leveraging its advertising-supported tier to penetrate emerging and price-sensitive markets.

Advertising has now become a central pillar of Netflix’s evolving strategy. The continued rollout of its ad-supported subscription tier, combined with paid-sharing initiatives, is expanding the company’s addressable audience. Market estimates suggest advertising revenue could approach US$5 billion in 2026. Investors are also looking for further margin expansion, which would support rising free cash flow and ongoing share buyback activity.

The proposed Warner Bros Discovery acquisition remains a key wildcard. While the deal could significantly enhance Netflix’s intellectual property portfolio and content depth, regulatory scrutiny and a potentially higher debt burden pose meaningful risks — particularly as Netflix has only recently established a clear and credible path to sustainable profitability.

Intel

Intel heads into its earnings announcement as one of the standout performers on the S&P 500 this year, with shares rising more than 30%. The rally reflects renewed investor confidence in the company’s turnaround strategy, alongside growing optimism around its exposure to accelerating global demand for artificial intelligence technologies.

The share price momentum also highlights a broader shift within the semiconductor industry, where supply constraints are increasingly emerging as a critical bottleneck. Toward the end of 2025, Intel benefited from several positive developments, including the US government taking a strategic stake in the company and the strengthening of partnerships with major industry players such as Nvidia.

“These developments not only provide financial support but also reinforce Intel’s strategic importance within the US semiconductor ecosystem,” Wong added. “Investors will be keen to understand how these partnerships translate into execution, scale, and long-term competitiveness.”

In the near term, Intel’s gross margins are expected to remain under pressure, primarily due to ramp-up costs associated with its advanced 18A manufacturing process. Any signs that margin pressure is stabilising would be viewed positively by the market, particularly if accompanied by continued discipline in capital expenditure to maintain balance sheet flexibility.

Looking beyond the current quarter, Intel’s relevance to the AI investment theme is gradually strengthening. As demand for AI chips continues to accelerate, capacity constraints at leading foundries are becoming more pronounced, creating 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 approximately 8% move in Intel’s share price following the earnings release, signalling expectations of heightened volatility. Consensus forecasts point to 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 and strategic investments are translating into sustainable operational momentum and long-term value creation.