Reviewed by Gotrade Internal Analyst
Next week’s reports come into focus.
With markets increasingly driven by earnings guidance rather than broad macro moves, investor attention is narrowing toward high-impact reports that could reset sentiment. Netflix’s upcoming Q4 results sit at the center of that focus, while other large-cap names reporting next week may help shape sector-level expectations.
🎬 Netflix (NFLX): Earnings Beyond Revenue and EPS
Netflix (NFLX) is expected to report Q4 2025 earnings soon, with Wall Street forecasting solid year-over-year growth:
- EPS: $0.55, up ~28% YoY
- Revenue: $11.97B, up ~16.8% YoY
Analysts expect growth to remain balanced across regions. U.S. and Canada revenue is projected to reach $5.27B, while Asia-Pacific, Latin America, and EMEA are each expected to grow more than 16% year over year. This suggests that subscriber monetization and pricing traction remain intact globally.
That said, expectations have softened slightly. Consensus EPS estimates have been revised marginally lower over the past month, reflecting a more cautious stance from analysts. Netflix shares are also still recovering from their post-Q3 selloff, indicating that investors remain sensitive to execution risks.
Beyond the numbers, attention is likely to center on strategic direction. Ongoing developments around a potential Warner Bros. Discovery transaction have added uncertainty, particularly around leverage, regulatory scrutiny, and capital allocation. Reports suggesting a possible all-cash structure have raised concerns that balance sheet pressure could offset longer-term strategic benefits.
As a result, guidance, commentary on margins, and management’s tone on capital discipline may prove more important than a simple revenue or EPS beat.
🩺 Johnson & Johnson (JNJ): Growth Expected, Visibility Mixed
Johnson & Johnson (JNJ) is scheduled to report earnings next week, with consensus expectations pointing to continued growth:
- EPS: $2.50, up ~22.6% YoY
- Revenue: $24.12B, up ~7.1% YoY
While JNJ has beaten consensus EPS estimates in each of the past four quarters, recent downward revisions have resulted in a negative Earnings ESP, making a clear upside surprise harder to predict.
Investors are likely to focus on pharmaceutical margins, pipeline updates, and management commentary on cost control rather than headline figures alone.
🛢️ Halliburton (HAL): Revisions Improve Ahead of Earnings
Halliburton (HAL) is also set to report, with estimates calling for a year-over-year decline:
- EPS: $0.54, down ~23% YoY
- Revenue: $5.41B, down ~3.6% YoY
Despite weaker annual comparisons, analyst estimates have been revised higher over the past month, signaling improving confidence in near-term execution. Guidance and demand visibility will be key, especially as energy markets remain sensitive to geopolitical developments.
What Traders Are Watching Next?
As earnings season progresses, company-specific narratives are increasingly driving price action. For Netflix, the focus will be on strategic clarity and forward-looking confidence. For others reporting next week, guidance and estimate revisions may matter more than whether results simply beat or miss expectations.
What stocks are you watching today?
Note: U.S. stock markets are closed on January 19 in observance of Martin Luther King Jr. Day, so Gotrade Daily will not be published on that day.
Disclaimer:
Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
