Netflix Tops Q1 Estimates with $10.54 Billion Revenue, Strong Guidance Pushes Stock Higher
Netflix (NASDAQ: NFLX) reported better-than-expected first-quarter earnings on Thursday, posting revenue of $10.54 billion, a 13% year-over-year increase, and exceeding Bloomberg analyst expectations of $10.50 billion. The company had previously guided revenue at $10.42 billion.
Earnings per share (EPS) came in at $6.61, significantly above the $5.68 Wall Street consensus and ahead of the company’s own forecast of $5.58. In Q1 of the previous year, Netflix posted an EPS of $5.28.
Netflix stock rose 1.19% to close at $973.03, and jumped another 3.39% in after-hours trading to $1,006.00, following the upbeat results and forward guidance. The company forecasted Q2 revenue of $11.04 billion, beating analyst expectations of $10.88 billion.
2025 Outlook: Confidence in Growth Trajectory
For full-year 2025, Netflix reaffirmed its earlier guidance of $43.5 billion to $44.5 billion in revenue, with operating margins projected at 29%. Management expressed confidence in continued growth, citing improved subscription and advertising revenue as key drivers.
“We are off to a good start in 2025,” the company stated in its shareholder letter, pointing to “slightly higher subscription and ad revenue” as a primary tailwind.
The streaming giant currently stands out as one of the few Big Tech stocks showing gains in 2025, up 9.2% year-to-date, in stark contrast to year-to-date declines of over 17% for Apple (AAPL), Amazon (AMZN), and Alphabet (GOOG). The broader S&P 500 (^GSPC) is down approximately 10% this year.
Strategic Shift: No More Subscriber Numbers – For Now
In a notable move, this quarter marked Netflix’s first earnings report without disclosing updated subscriber figures, as it pivots toward emphasizing revenue and engagement. At the end of 2024, Netflix had 301.6 million global subscribers, having added 41 million over the year.
The company indicated it would share subscriber data only “as we cross key milestones” going forward.
Global Expansion and Long-Term Aspirations
Netflix continues to expand internationally, and pricing strategy remains central to its growth. Earlier in the year, the company raised prices across several markets, including the U.S., UK, and Argentina. On Thursday, it announced new price hikes in France, effective immediately.
Despite the near-term benefits of password-sharing crackdowns beginning to taper, Netflix anticipates future subscriber growth from its content pipeline and ad-supported tier, currently one of the lowest-priced in the market at $7.99/month.
$1 Trillion Ambition?
A recent Wall Street Journal report revealed that Netflix is internally targeting $1 trillion in market value and aims to double its revenue by 2030. Netflix’s market cap currently sits slightly above $400 billion.
On the earnings call, co-CEO Ted Sarandos clarified the report, stating:
“We often have internal meetings and we talk about long-term aspirations. But it’s important to note that this is not the same as forecast… We don’t have a five-year forecast or five-year guidance.”
Still, he emphasized that the company remains focused on building “the most loved and valued entertainment company for all of our stakeholders.”
Leadership Transition
In a governance update, Netflix announced that Reed Hastings has officially transitioned from Executive Chairman to Chairman and Non-Executive Director, completing a leadership evolution that began with his 2023 departure from the CEO role.
Key Takeaways:
- Q1 revenue: $10.54B vs. $10.50B expected
- EPS: $6.61 vs. $5.68 expected
- Q2 revenue guidance: $11.04B vs. $10.88B expected
- 2025 revenue forecast: $43.5B–$44.5B; operating margin 29%
- Market cap: ~$400B, with long-term internal target of $1T
- Stock YTD: +9.2% (vs. declines for major tech peers)