Netflix once again outperformed Wall Street expectations in the first quarter of 2025, driven by strong subscriber growth and price increases across key markets. The company reported earnings per share of $6.61 on revenue of $10.54 billion, marking a 25% and 12.5% year-on-year increase, respectively.
The streaming giant’s stock rose 2.5% in after-hours trading following the earnings release, extending a year-to-date gain of 9%. This places Netflix in sharp contrast to its tech peers, many of which have seen double-digit declines amid global trade disruptions and increased tariffs.
Netflix attributed its strong quarterly performance to a combination of strategic pricing, subscriber gains, and expense timing. The company implemented price hikes across the U.S., Canada, Portugal, and Argentina earlier this year, affecting multiple tiers—including its premium, standard, and ad-supported plans. The result was a significant improvement in profitability, with operating income rising 27% to $3.35 billion and margins climbing to 31.7%, nearly four percentage points higher than the same period last year.
Despite ongoing market volatility, Netflix appears largely insulated from broader economic pressures. Co-CEO Greg Peters noted, “We take some comfort that entertainment has historically been resilient during tougher economic times. Netflix, in particular, has consistently shown strength.”
This quarter also marked a pivotal shift in how the company reports its performance. Netflix announced it will no longer disclose subscriber numbers, moving instead to focus on more traditional financial metrics like revenue growth and operating margins. Analysts had anticipated slowing user growth in 2025, following a robust addition of 18.9 million subscribers in the final quarter of 2024.
Netflix has steadily evolved its business strategy since a 2022 slowdown in subscriber growth. Key initiatives have included launching a lower-cost ad-supported plan, cracking down on password sharing, and expanding into live programming. Recent live-streamed content such as WWE RAW, NFL games, and the highly publicized Jake Paul vs. Mike Tyson fight have broadened the platform’s appeal.
In terms of content, the company credited several hits for its recent performance, including the series Adolescence, which became the first streaming program to top the UK’s weekly TV ratings. Other notable releases included films like Back in Action, Ad Vitam, and Counterattack.
Looking ahead, Netflix reaffirmed its full-year revenue forecast of $43.5 billion to $44.5 billion, with an expected operating margin of 29%. “There’s been no material change to our overall business outlook since our last earnings report,” the company said, adding that it is currently tracking above the midpoint of its 2025 revenue guidance.
With strong financial results, a diversified content portfolio, and strategic pricing moves, Netflix continues to maintain its leadership in the streaming market—weathering economic headwinds better than most.
