Netflix Inc., part of the famed FAANG, or now known as MAANG group of stocks, reported results for the second quarter of 2025 that surpassed analyst expectations. The streaming giant also raised its full-year forecast. Yet, shares fell in extended trading.Revenue for the quarter stood at $11.08 billion, while estimates had projected a $11.07 billion figure. Earnings Per Share (EPS) for the quarter comfortably beat expectations of $7.08, coming in a $7.19.
For the full-year, Netflix now expects revenue to be between $44.8 billion and $45.2 billion, higher than the earlier projected range of $43.5 billion to $44.5 billion. The raised forecast is a combination of a weak US Dollar, healthy member growth and ad sales, according to a company statement. Net Income is likely to cross $10 billion for the first time on an annual basis.
This will now be the second quarter that Netflix will not be releasing individual member data.
However, shares fell as much as 2% in extended trading after the management warned of lower operating margin in the second half of 2025, in comparison to the first half, due to higher content amortisation, along with higher sales and marketing costs, in proportion to an increased content slate during this period.Operating margin for the second quarter stood at 34.1%, which is an improvement of nearly three percentage points from the prior quarter and over seven percentage points from the same quarter last year.
For the full-year, Netflix now expects revenue to be between $44.8 billion and $45.2 billion, higher than the earlier projected range of $43.5 billion to $44.5 billion. The raised forecast is a combination of a weak US Dollar, healthy member growth and ad sales, according to a company statement. Net Income is likely to cross $10 billion for the first time on an annual basis.
This will now be the second quarter that Netflix will not be releasing individual member data.
However, shares fell as much as 2% in extended trading after the management warned of lower operating margin in the second half of 2025, in comparison to the first half, due to higher content amortisation, along with higher sales and marketing costs, in proportion to an increased content slate during this period.Operating margin for the second quarter stood at 34.1%, which is an improvement of nearly three percentage points from the prior quarter and over seven percentage points from the same quarter last year.
Another factor behind the fall could be the sharp run-up that the stock has already seen. Netflix shares have nearly doubled in value over the last 12 months, taking its overall market capitalisation to $500 billion, higher than its rivals Walt Disney Co., Comcast Corp. and Warner Bros. Discovery Inc. put together.
According to market researcher Antenna, Netflix’s user growth in the US has slowed as benefits from the crackdown on password sharing begin to wane.
Shares of Netflix fell 1.6% in extended trading, having gained nearly 2% in regular trade.
(With Inputs From Agencies.)
