Netflix surpassed Wall Street’s expectations for its most recent quarterly results and provided an optimistic revenue forecast on Thursday, indicating resilience amid the economic volatility linked to President Donald Trump’s unpredictable tariff strategies.
The company’s shares remained stable in after-hours trading, sitting at $970.10.
In a notable leadership change, Netflix co-founder Reed Hastings transitioned from his role as executive chairman to that of non-executive chair of the board, citing this move as a natural step in the company’s leadership development and succession planning.
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In its earnings report, Netflix disclosed revenue of $10.54 billion for the first quarter, slightly exceeding the average analyst prediction of $10.52 billion, as per data collected by LSEG.
The company’s diluted earnings per share reached $6.61, surpassing the expected figure of $5.71. Noteworthy releases in this quarter included the limited series “Adolescence,” the drama thriller “Zero Day,” and the unscripted series “Temptation Island.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 973.03 | +11.40 | +1.19% |
Looking forward, Netflix forecasts an increase in revenue to $11.04 billion for the April to June period, exceeding the analyst consensus of $10.90 billion, primarily driven by membership growth and enhanced pricing.
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Analysts have raised concerns that Trump’s economic policies might trigger a recession, potentially leading consumers to reevaluate their spending on streaming services.
However, Bank of America media analyst Jessica Reif Ehrlich suggests that while Netflix may not face a significant wave of subscriber cancellations due to its strong market presence and popular content, some budget-conscious viewers might opt for a more affordable pricing tier.
The streaming service’s lower-priced, ad-supported tier has gained traction since its launch in late 2022, contributing to 55% of new sign-ups in regions where it is available.
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As the dominant player in the streaming video landscape, Netflix boasts over 300 million subscribers globally. The company announced a remarkable addition of 18.9 million subscribers during the fourth quarter of 2024.
This quarter, Netflix chose not to disclose exact subscriber figures, opting instead to highlight other performance indicators such as revenue and profit, leading analysts to speculate slower subscriber growth may be on the horizon.
