10:57 AM EDT, 10/03/2025 (MT Newswires) -- Netflix ( NFLX )' (NFLX) third-quarter results are expected to reflect "strong" user engagement as the company shows potential for continued viewership growth in the long term, Oppenheimer said in a client note e-mailed Friday.

The streaming giant is scheduled to release its latest quarterly results on Oct. 21.

Third-quarter engagement has been strong, with hours viewed rising 20% year over year and expected to further improve in the long-term as Netflix ( NFLX ) "pushes more into live events, expanding its competitive advantage," Oppenheimer analysts, including Jason Helfstein, said in the report.

Membership growth, price increases, and higher ad revenue helped buoy second-quarter revenue, the streamer said in July. At the time, Netflix ( NFLX ) projected third-quarter revenue rising 17% year-over-year to $11.53 billion, with earnings per share seen at $6.87.

Netflix ( NFLX ) captured 8.8% of US television viewership in July, a record high for the company, and 8.7% in August, the brokerage said, citing Nielsen's The Gauge data.

Oppenheimer expects Netflix ( NFLX ) to issue its initial 2026 outlook that could serve as another catalyst amid the stock's underperformance. Its shares are down 4% since the release of its most recent earnings, compared with the Nasdaq's 9% rise, Helfstein said.

A potential takeover of Warner Bros. Discovery (WBD) by Paramount Skydance (PSKY) is "immaterial" to Netflix ( NFLX ) as the merged company would likely continue licensing content to Netflix ( NFLX ), he said. However, if they stopped licensing, there will be little impact as Paramount and Warner represented only 2% of Netflix ( NFLX )' 2024 and 2025 year-to-date top 10 engagement.

Oppenheimer reiterated its outperform rating and price target of $1,425 on Netflix ( NFLX ).

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