Netflix Surpasses Expectations, Raises Forecast Amidst Rival Media Companies' Asset Sales and Cost Cuts

Netflix reported Q2 results exceeding investor expectations, with revenue at $11.1 billion and earnings at $7.19 a share. The company raised its forecast for full-year sales and profit margins, citing a steady slate of popular shows and a weaker dollar. Netflix's market value tops $500 billion, making it worth more than Disney, Comcast, and Warner Bros. Discovery combined. Despite increased competition, Netflix's domestic revenue grew 15% in Q2.

Netflix Inc. (NFLX) reported its second-quarter 2025 earnings on Thursday, exceeding investor expectations with revenue of $11.1 billion and earnings per share (EPS) of $7.19. The company's results topped Wall Street forecasts, which predicted EPS of $7.08 on $11.07 billion in revenue [1].

Netflix's revenue grew 16% year-over-year, driven by a combination of solid member growth and ad sales. The company attributed the revenue increase to the depreciation of the US dollar against most other currencies, as well as continued business momentum. Netflix also highlighted its ad revenue growth, stating that it is on track to double this year [1].

In its letter to shareholders, Netflix raised its full-year revenue forecast to $44.8 billion-$45.2 billion, up from the previous estimate of $43.5 billion-$44.5 billion. This represents a 15%-16% year-over-year growth, or 16%-17% growth on a foreign exchange neutral basis [1].

Despite the strong performance, Netflix continues to avoid reporting subscriber numbers, a metric that has historically been used to gauge growth in the streaming industry. The company has shifted its focus to financials and user engagement metrics [1].

Netflix's market value has surged to over $500 billion, making it worth more than Disney, Comcast, and Warner Bros. Discovery combined. The company's domestic revenue grew 15% in the second quarter, despite increased competition in the streaming market [1].

As the second-quarter earnings season continues, investors will be closely watching Netflix's performance and other key metrics, such as advertising and top-line growth. The broader set of companies posting results follows a flurry of bank earnings earlier this week, which marked the unofficial start of the second quarter earnings season [2].

References:
[1] https://variety.com/2025/tv/news/netflix-q2-earnings-2025-1236463977/
[2] https://finance.yahoo.com/news/live/earnings-live-netflix-highlights-as-second-quarter-earnings-season-ramps-up-205852482.html