Netflix (NFLX) has returned its focus to organic growth after walking away from the bidding process for Warner Bros. Discovery (WBD) assets following a higher offer from Paramount Skydance (PSKY), BofA Securities said in a Friday research note.

Netflix maintains its position as the largest streaming service globally, with ample growth opportunity given sub-50% penetration across connected TV households, according to the investment firm.

BofA now expects 2026 revenue of $51.28 billion for Netflix, representing 13% year-over-year growth. Earnings per share of $3.19 and free cash flow of $11.3 billion were broadly in line with company guidance, according to the note. Analysts surveyed by FactSet expect revenue of $51.18 billion and EPS of $3.15.

The brokerage points to several organic growth drivers, including investments in content, live events and sports, international expansion, podcasts, mobile content and advertising.

BofA maintained its buy rating on the stock and lowered its price objective to $125 from $149.

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