Netflix raises full-year outlook as profit beats expectations, but shares slip
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The news: Netflix has raised its full-year revenue and margin forecasts after second-quarter results exceeded expectations on every major metric.
The numbers: Revenue grew 16% year over year to USD11.08 billion ($18.2 billion), beating Wall Street estimates, while net income rose to USD3.1 billion, or USD7.19 per share.
The company now expects 2025 revenue of USD44.8 billion to USD45.2 billion, up from a prior forecast of USD43.5 billion to USD44.5 billion, and operating margin of 29.5%, up from 29%.
The second-quarter operating margin was 34.1%, up from 27.2% a year earlier and ahead of the 33.3% expected.
The context: Netflix no longer provides quarterly subscription updates but noted that ad-supported monthly active users reached 94 million in May. Engagement among US ad-tier members was “on par” with ad-free users, it said.
Netflix shares, which have nearly doubled over the past year, fell about 1.5% in after-hours trading.
The sources: Netflix, Wall Street Journal, Bloomberg
