Netflix Raises Guidance Amid Strong Q2 Earnings and Revenue Growth: Is the Stock a Buy?

Netflix reported Q2 revenue of $11.08 billion, up 16% YoY, and EPS of $7.19, a 47% increase. The company raised its guidance for Q3, expecting revenue to climb 17% with a 31% operating margin. Netflix attributed its success to its wide array of quality content and international strategy. The stock fell despite strong results, but the pullback could be a buying opportunity.

Netflix (NFLX) reported a robust second quarter (Q2) of 2025, with revenue climbing 16% year-over-year (YoY) to $11.08 billion, surpassing analyst expectations [1]. The company's earnings per share (EPS) increased by 47% to $7.19, beating market forecasts. Despite these impressive figures, Netflix's stock price slipped 1% after-hours, likely due to high investor expectations [2].

The streaming giant attributed its success to a combination of factors, including strong member growth, a weakening US dollar, and rising ad revenue. Netflix has also benefited from its extensive content library and strategic international expansion. The company expects to maintain this momentum, raising its guidance for Q3, with revenue projected to climb 17% and a 31% operating margin [2].

Netflix's international operations continue to be a significant driver of growth. During Q2, Europe, Middle East, and Africa (EMEA) contributed 31.93% of the company's total revenue, while Asia-Pacific and Latin America accounted for 11.78% and 11.80%, respectively [3]. The company's international strategy provides a hedge against domestic economic downturns and access to faster-growing economies.

While Netflix's stock price has fallen, this could present a buying opportunity for investors. The company's strong financial performance and positive outlook suggest that the recent pullback might be a temporary setback. However, investors should remain vigilant and monitor the company's international revenue movements to gauge its future direction.

References:
[1] https://www.ainvest.com/news/netflix-shares-fall-beating-q2-expectations-raising-targets-2507/
[2] https://www.sharecafe.com.au/2025/07/18/netflix-beats-earnings-expectations-as-q2-revenue-climbs-16/
[3] https://www.nasdaq.com/articles/international-markets-and-netflix-nflx-deep-dive-investors