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.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
