Netflix’s stock surged in after-hours trading Thursday after the streaming giant beat Wall Street's expectations for both revenue and profit in the first quarter of 2025. With bullish guidance, a clear growth strategy, and strong performance in a rocky tech environment, Netflix is positioning itself as a standout among Big Tech names this year.
Strong Q1 Results Kick Off the Year
Netflix reported Q1 revenue of $10.54 billion, up 13% year over year and above the $10.50 billion consensus estimate. Earnings per share came in at $6.61, well above the $5.68 analysts expected. The company had initially guided for $5.58 in EPS.
Crucially, Netflix also raised its Q2 outlook, forecasting $11.04 billion in revenue compared to the $10.88 billion Wall Street projected.
“We are off to a good start in 2025,” management wrote in its earnings release, pointing to “slightly higher subscription and ad revenue” as key contributors.
The company maintained its full-year revenue forecast of $43.5 to $44.5 billion, and reiterated its goal of hitting 29% operating margins—strong signals of confidence in its longer-term strategy.
Netflix Leads While Rivals Stumble
Netflix’s stock has jumped over 9% year to date, sharply outperforming peers like Apple, Amazon, and Alphabet, which have all suffered double-digit losses in 2025. In a year marked by geopolitical and macroeconomic uncertainty—including market turmoil linked to President Trump’s renewed trade war—Netflix’s resilience has impressed investors.
While other tech firms have faced growth slowdowns, Netflix has kept up momentum by leaning into international expansion, cracking down on password sharing, and growing its ad-supported tier.
Goodbye Subscriber Metrics, Hello Engagement
This quarter marked Netflix’s first earnings report without disclosing net new subscriber additions. The company, which ended 2024 with 301.6 million subscribers, says it will only release those figures moving forward as it hits “key milestones.”
Instead, Netflix is shifting investor focus toward engagement and monetization. Price hikes in key markets—including the U.S., U.K., Argentina, and now France—have reportedly gone “in line with expectations,” while the ad-supported plan at $7.99 per month continues to be one of the most competitively priced tiers available.
The strategy seems to be working. Though growth from the password-sharing crackdown is expected to taper off, Netflix anticipates a boost from its upcoming content slate and believes its ad tier remains a major avenue for long-term growth.
Eyes on the $1 Trillion Prize
Netflix is reportedly aiming to double revenue by 2030 and eventually reach a $1 trillion market cap—ambitious goals for a company that currently sits just above $400 billion.
Co-CEO Ted Sarandos addressed the headlines directly during the earnings call.
“We often have internal meetings and we talk about long-term aspirations,” he said. “But it’s important to note that this is not the same as forecast… You can assume that we are long-range thinking, and that we’re working hard every day to build the most loved and valued entertainment company.”
Thursday’s announcement also included a leadership shift: former CEO Reed Hastings will now serve as chairman and non-executive director.
Looking Ahead
With solid Q1 results, raised guidance, and a confident leadership team, Netflix appears well-positioned to navigate the challenges of 2025. Its pivot away from raw subscriber counts to engagement and revenue growth reflects a maturing business model, while continued pricing power and global expansion could propel the company even further.
Investors will be watching closely to see how Netflix executes on its content strategy and whether it can maintain momentum amid a shaky economic backdrop. But for now, the streamer is taking charge.
