11:05 AM EDT, 10/16/2025 (MT Newswires) -- Netflix ( NFLX ) is positioned for double-digit revenue growth in Q3, driven primarily by price increases, expanding ad revenue and high user engagement fueled by a "strong content slate," UBS Securities said in a report Thursday.

The investment bank forecasts 17% revenue growth and 25% operating income growth for Q3, aided by hits such as Squid Game, Wednesday, and KPop Demon Hunters. UBS also projects continued momentum in Q4 with new releases including Monster, The Witcher, and Stranger Things.

UBS's viewership tracker showed global Netflix ( NFLX ) consumption up 20% year over year in Q3, led by a 30% jump internationally. The firm estimates about 7.4 million subscriber additions and 3.9% average revenue per member growth, supported by price increases in several markets and expanding ad monetization.

Looking ahead, UBS models revenue and operating income growth of 15% and 30%, respectively, in 2025 with free cash flow rising to $13.3 billion by 2026 from $9.2 billion in 2025, according to the note.

UBS reiterated a buy rating on the stock with a price target of $1,495.

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