Netflix Q1 Earnings Beat Estimates with Boost from Ads, Price Hikes

Netflix (NASDAQ:NFLX) reported strong first-quarter earnings that exceeded Wall Street expectations, driven by price hikes and rising demand for its ad-supported subscription tiers. Shares rose 3% in after-hours trading following the announcement.

The streaming giant posted earnings per share of $6.61, surpassing analysts’ consensus of $5.69. Revenue climbed 13% year-over-year to $10.54 billion, slightly beating the forecast of $10.5 billion. Operating income also saw significant growth, increasing 27% to $3.35 billion.

Netflix attributed its robust performance to higher subscription and advertising revenue, as well as favorable expense timing. The company continues to expand globally, now producing content in over 50 countries.

Looking ahead to the second quarter, Netflix projects 15% revenue growth, supported by ongoing membership gains, recent price adjustments, and increased ad revenue. It expects revenue of $11.04 billion, above the estimated $10.9 billion, and an EPS of $7.03, topping the $6.24 consensus. The company also anticipates a 33% operating margin in Q2, a notable 6% improvement from last year.

For full-year 2025, Netflix reiterated its guidance of $43.5 billion to $44.5 billion in revenue and a targeted operating margin of 29%, closely aligning with Wall Street's $44.3 billion estimate.

In a strong show of confidence, Netflix repurchased 3.7 million shares during the quarter for $3.5 billion—the largest buyback in its history.

With continued growth in both its ad and subscription businesses, Netflix remains a dominant force in the streaming industry, leveraging its global production scale and diversified revenue streams to stay ahead in a competitive market.