Netflix ( NFLX ) reported first-quarter earnings that beat analysts’ expectations, pushing shares higher in after-hours trading Thursday.
The streaming giant’s revenue rose more than 12% year over year to $10.54 billion, topping Visible Alpha’s consensus analyst estimate. Net income was $2.89 billion, or $6.61 per share, up from $2.33 billion, or $5.28 per share, a year earlier, beating Wall Street expectations. This was the first quarter Netflix did not report subscriber numbers.
Netflix shares rose about 3% in after-hours trading. As of Thursday’s close, they are up 9% so far in 2025.
Netflix’s performance grew as subscription prices rose
The company said the better-than-expected results were due in part to higher subscription and advertising revenue, as well as the timing of expense spending.
Netflix raised its package prices in January, raising the ad-supported package from $6.99 to $7.99 per month, the standard ad-free package from $15.49 to $17.99 per month, and the premium package from $22.99 to $24.99 per month.
Netflix maintained its revenue forecast of $43.5 billion to $44.5 billion for fiscal 2025. Analysts on average expected $44.27 billion. The company’s second-quarter revenue forecast of $11.04 billion was higher than Wall Street’s expectations of $10.91 billion.
Netflix co-CEO Greg Peters said it expects ad revenue to double this year as the company rolls out its ad technology suite. The suite is currently live in the United States and Canada and is expected to be launched in 10 other markets in the coming months.
Earlier this week, Netflix executives reportedly said they aim to double the company’s $39 billion in revenue last year and reach a $1 trillion market cap by 2030. The streaming company is currently valued at about $416 billion.
Netflix executives say it remains resilient amid economic uncertainty
“We also take some comfort from the fact that the entertainment industry has historically been quite resilient during tough economic times,” Peters said on the company’s earnings call Thursday.
“Netflix has also been quite resilient overall, albeit with a much shorter history, and we haven’t seen any significant impact during those tough times,” he added.
This comes after Morgan Stanley last week called the company a “top pick” that could weather the current tariff situation.
Netflix also announced Thursday that former CEO Reed Hastings has moved from executive chairman to chairman and non-executive director.
Related topics:
