Netflix Q1 Earnings Exceed Expectations as Ad Tier and Price Hikes Drive Growth

Netflix (NASDAQ:NFLX) reported first-quarter 2025 results on Thursday that outpaced Wall Street estimates, powered by recent subscription price increases and a surge in demand for its ad‑supported tiers. Shares climbed 3% in after‑hours trading on the strength of the quarter.

Q1 Performance Highlights

• EPS: $6.61 vs. consensus $5.69

• Revenue: $10.54 billion (+13% YoY) vs. consensus $10.50 billion

• Operating Income: $3.35 billion (+27% YoY)

Netflix attributed the outperformance to “slightly higher subscription and ad revenue and the timing of expenses.”

Q2 & Full‑Year Guidance

• Q2 Revenue Growth: +15%, driven by price changes and membership/advertising gains

• Q2 Revenue: $11.04 billion vs. consensus $10.9 billion

• Q2 EPS: $7.03 vs. consensus $6.24

• Q2 Operating Margin: 33% (+6 pp YoY)

For full‑year 2025, Netflix reiterated its revenue target of $43.5 billion to $44.5 billion and an operating margin goal of 29%, in line with the consensus around $44.3 billion in sales.

Capital Returns & Global Reach

• Share Repurchases: 3.7 million shares bought back for $3.5 billion—the largest quarterly buyback in company history.

• Production Footprint: Original content produced in over 50 countries, underscoring Netflix's global scale.

Key Data APIs for Investors

To track Netflix's upcoming earnings and assess its historical performance, consider these FMP APIs:

• Earnings Calendar API
  Stay updated on Netflix's next earnings date and other critical financial announcements.

• Earnings Historical API
  Analyze past EPS and revenue results to gauge the consistency and momentum of Netflix's earnings beats.

With robust guidance and a record buyback, Netflix looks set to maintain momentum—especially if its ad‑supported tier continues to attract new viewers. Investors should monitor upcoming earnings dates and compare them against historical trends to validate the sustainability of this growth trajectory.