Netflix (NASDAQ: NFLX) reported first-quarter 2025 results that exceeded Wall Street expectations, driven by stronger subscription revenue and growing adoption of its ad-supported plans. Shares rose more than 3% in pre-market trading on Monday following the report.
The streaming giant posted earnings per share of $6.61, well above the consensus estimate of $5.69. Revenue climbed 13% year-over-year to $10.54 billion, slightly ahead of the $10.5 billion forecast. Operating income increased 27% from the prior year to $3.35 billion.
Netflix attributed the solid performance to increased subscription pricing, higher ad revenue, and efficient expense timing.
For the second quarter, the company expects revenue to rise 15% to $11.04 billion, surpassing the Street estimate of $10.9 billion. It also projects an EPS of $7.03—well above the $6.24 consensus—and an operating margin of 33%, a six-point improvement from last year.
Looking ahead, Netflix reaffirmed its full-year 2025 revenue guidance of $43.5 billion to $44.5 billion, compared to the consensus of $44.3 billion. The company continues to target a 29% operating margin for the year.
In addition to its strong operating performance, Netflix ramped up shareholder returns, repurchasing 3.7 million shares in the quarter for $3.5 billion—the largest buyback in the company’s history.
Following the results, UBS analyst John Hodulik raised his price target for Netflix (NASDAQ: NFLX) shares to $1,150 from $1,140, while maintaining a Buy rating on the stock.
