To The Moon

Netflix's Second Quarter Revenue Outlook Beats Estimates, Signaling Continued Resilience

$Netflix(NFLX)$   sees second quarter revenue rising 15% in the second quarter, faster than analysts were expecting, as the streaming giant stressed that profit growth outlook remains solid.

Revenue for the three months ending in June is expected to jump to $11.04 billion, surpassing the average estimate of $10.88 billion, according to Bloomberg consensus. For the three months ended March, the company's revenue climbed 13% to $10.54 billion, in line with analysts' estimates.

"Our revenue and profit growth outlook remains solid, with no change to our 2025 guidance forecast for revenue of $43.5-$44.5B and operating margin of 29%," the company said in its shareholder letter.

Shares of the streaming giant advanced 3.3% in after-hours trading, adding to this year's gains. Before the earnings were released, the stock has risen about 9% this year, defying a stock market sell-off that sent the $S&P 500 Index (.SPX.US)$ tumbling more than 10% and pushed the $NASDAQ(.IXIC)$   into a bear market earlier this month amid uncertainty over US President Donald Trump’s sweeping tariff policies. Netflix held on to gains, after more than tripling in the past two years amid optimism for continued revenue growth.

While the company stopped sharing its its global net subscription numbers, Netflix said it expects continued growth in membership and advertising revenue, as it sees operating margin rising by about 6 percentage point to 33%.

"We continue to forecast 2025 revenue of $43.5B-$44.5B, which assumes healthy member growth, higher subscription pricing and a rough doubling of our ad revenue, partially offset by F/X net of hedging," the company said.

The company stressed that there’s been "no material change" to our overall business outlook since its last earnings report. Despite the recent weakness of the US dollar relative to most other currencies, it said it's still "tracking above the mid-point of our 2025 revenue guidance range," bolstering investor optimism over the streaming giant's ability to weather the macroeconomic tumult that was fueled by Trump's trade policies.

The recent share price rally further gained steam after the Wall Street Journal reported that the company is targeting a doubling of revenue and tripling of operating profit by 2030.

"If Netflix can achieve these targets, which would result in compounded annual growth rates, or CAGRs, of 12% and 19% for revenue and operating profit, respectively, through 2030, we'd currently see the stock as fairly valued," Morningstar analyst Matthew Dolgin wrote in a note earlier this week.

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