FINWIRES · TerminalLIVE
FINWIRES

Netflix Set to Beat 2026 Guidance Amid Early US Price Increases, UBS Says

-- Netflix (NFLX) may outperform its own guidance for the full year as the impact of earlier-than-expected price increases takes hold, UBS Securities said in a note emailed Thursday.

Last month, the company increased prices across its US plans, including raising its ad-supported standard tier to $8.99 per month from $7.99. The price of its standard plan without ads rose by $2 to $19.99 a month, while the premium tier now costs $26.99, compared with $24.99 previously.

These price increases offer upside potential for 2026 estimates, UBS analysts including John Hodulik wrote.

UBS projects currency neutral revenue growth of 14% with a 32.6% margin rate for 2026, compared with guidance that called for a 11% to 13% revenue increase and a 31.5% margin.

BofA Securities previously said that Netflix's most recent round of price increases highlighted the streaming giant's pricing power.

The company is likely to roll out more hikes in other major markets that are expected to boost average revenue per member, according to the UBS note.

The widening price gap between plans with and without ads, along with new demand-side platform relations with companies including Amazon (AMZN), will likely double Netflix's ad-supported revenue in 2026, Hodulik said.

"While Netflix continues to slowly grow share of total TV viewing in the US, its share of streaming viewership remains under pressure given growth in (free ad-supported television)," Hodulik added.

In February, Netflix dropped its plans to acquire Warner Bros. Discovery (WBD), which will now be acquired by Paramount Skydance (PSKY).

"With the Warner Bros bid behind it, we believe Netflix is still positioned to benefit from its solid slate of content this year including the return of four of its top 20 series, new films such as War Machine and The Rip, a growing list of live events and the ramp in video games," Hodulik said.

Shares of Netflix were up 2.5% in recent trading on Thursday.

Price: $101.64, Change: $+2.25, Percent Change: +2.26%

Related Articles

International

Persian Gulf Outlook Caps European Bourses Midday

European bourses tracked sideways midday Wednesday after US President Donald Trump unilaterally extended a Persian Gulf ceasefire on Tuesday, but the Strait of Hormuz remained closed to tanker traffic.Property, oil, and tech stocks led gains on continental trading floors, while bank shares lagged.Front-month North Sea Brent crude-oil futures were up 1% at $99.49 a barrel.Investors also eyed Wall Street futures in the green amid choppy closes overnight on Asian exchanges.In economic news, the European Commission on Wednesday proposed AccelerateEU, a set of measures to tackle fossil fuel shortages triggered by the Strait of Hormuz closure. However, the EC said true security would come from a shift to domestically produced clean energies.The pan-continental Stoxx Europe 600 Index was stable mid-session.The Stoxx Europe 600 Technology Index was up 1%, while the Stoxx 600 Banks Index lost 0.9%.The Stoxx Europe 600 Oil and Gas Index rose 1.5%, while the Stoxx 600 Europe Food and Beverage Index edged 0.1% higher.The REITE, a European REIT index, gained 0.8%.On the national market indexes, Germany's DAX was down 0.2%, and the FTSE 100 in London was steady. The CAC 40 in Paris was down 0.4%, and Spain's IBEX 35 eased 0.4%.Yields on benchmark 10-year German bonds were steady, near 3%.The Euro Stoxx 50 volatility index was down 4.4% at 23.10, but still indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

$^SXXP
Mining & Metals

Altius Minerals Price Target Raised to $52 at Raymond James

Raymond James raised its price target on Altius Minerals Corp. (ALS.TO) to $52 from $48.Analyst Brian MacArthur maintained an Outperform rating on shares of the Canadian diversified mining and metals royalty company ahead of its Q1 results on May 12."ALS expects to report 1Q26 attributable royalty revenue of about $26.4 Million compared to $15.0 Million in 1Q25," MacArthur said in a note to clients."Of note base metal revenue of $9.1 Million for the quarter reflects higher realized copper prices and the timing of copper stream deliveries from Chapada, as well as higher Voisey's Bay revenue while increased lithium revenue of $5.4 Million reflects the acquisition of Lithium Royalty Corp," the analyst said.

$ALS.TO
Mining & Metals

Pulsar Helium Secures Option Over 488,090 Acres in Michigan's Upper Peninsula

Pulsar Helium (PLSR.V) said Wednesday that it secured an option to lease 488,090 gross acres of mineral rights comprising the Falcon project in Michigan from Keweenaw Land Association (KLA).Pulsar said the three-year option commenced March 31 and covers non-hydrocarbon gases including helium-4, helium-3, carbon dioxide and hydrogen. The company must spend at least US$1.0 million in exploration under the agreement.The agreement contains a staged acreage surrender schedule, allowing Pulsar to refine its exploration focus across the project and thereby reduce its retained acreage. A final development leasehold of up to 20,000 net acres can be selected at the exercise of the option, Pulsar said.Upon the exercise of the option, Pulsar and KLA would enter into a definitive agreement with established commercial terms, including proceeds distributed as royalty revenue payable to KLA."Michigan's Precambrian basement geology is highly prospective, and the region has not seen any activity for primary helium exploration," Pulsar Chief Executive Officer Thomas Abraham-James said.The company said it has assembled a team to evaluate the property.

$PLSR.V