Netflix Surpasses Q2 Earnings Expectations with a 16% Revenue Boost, Despite Stock Dip
Netflix delivered impressive second-quarter earnings this Thursday, showcasing a 16% revenue growth and outperforming analyst predictions with earnings per share standing at $7.19, compared to the anticipated $7.08. The streaming behemoth also elevated its full-year revenue forecast to between $44.8-$45.2 billion, a significant rise from its former estimate of $43.5-$44.5 billion.
However, despite these encouraging results, Netflix shares experienced a slight dip of about 1% in after-hours trading. This was a result of the company’s cautionary statement that operating margins would likely decrease in the latter half of 2025. The company attributes this to the escalating content costs and marketing expenses associated with their extensive programming schedule, which includes the return of popular shows such as ‘Squid Game,’ ‘Wednesday,’ and ‘Stranger Things.’
Revenue from Netflix’s U.S. and Canada segment saw a 15% growth in Q2, a substantial increase from the 9% in Q1, primarily fueled by recent price hikes. Furthermore, the company is on track to approximately double its advertising revenue this year as it persistently expands its ad-supported tier on a global scale.
Source: CNBC