Netflix exceeded Wall Street expectations for the second quarter of 2025, driven by strong global engagement, particularly with the final season of its blockbuster Korean series Squid Game. The company also revised its full-year revenue outlook upward, citing healthy subscriber growth, increased advertising revenue, and favorable foreign exchange trends.
For the quarter, Netflix reported diluted earnings per share of $7.19, slightly ahead of analyst expectations of $7.08, according to LSEG data. Net income rose to $3.1 billion, while revenue reached $11.08 billion—marginally above the projected $11.07 billion.
Despite the solid results, shares of Netflix declined 1.8% in after-hours trading to $1,251.86. Analysts attributed the dip to investor expectations of a more significant upward revision to the company’s full-year guidance.
The streaming giant raised its 2025 revenue forecast to a range of $44.8 billion to $45.2 billion, up from the previous high-end estimate of $44.5 billion. The company credited the adjustment to sustained member growth and accelerating ad sales.
Squid Game, Netflix’s most-watched non-English series, debuted its third and final season just before the quarter’s close and garnered 122 million views within days. Additional content highlights included Sirens, The Four Seasons, and the third season of Ginny & Georgia.
Netflix continues to diversify its content portfolio, investing in live programming such as WWE events and expanding its ad-supported subscription tier. Although advertising is still a nascent revenue stream, it remains a strategic focus.
Notably, Netflix no longer discloses quarterly subscriber numbers, instead urging investors to monitor profitability metrics. The company indicated that subscriber growth exceeded internal expectations, though the timing of the surge limited its immediate revenue impact.
Looking ahead to Q3 2025, Netflix projects revenue of $11.5 billion and net income approaching $3 billion—both slightly ahead of consensus estimates.
The remainder of the year promises high-profile content, with Wednesday returning for its second season in August and the final chapters of Stranger Things scheduled for release in November and December.
Addressing the company’s growth strategy, Chief Financial Officer Spencer Neumann reaffirmed Netflix’s commitment to organic expansion: “We’ve historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook.”
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