Netflix Inc. (NFLX) shares rose 9.2% in after-hours trading on Thursday following its first-quarter earnings report. The company’s revenue grew 13% year-over-year to $10.54 billion, exceeding analyst expectations of $10.50 billion.
Earnings per share of $6.61 also beat forecasts, marking a significant improvement from the prior-year period of $5.28. For the current quarter, Netflix guided revenue above Wall Street expectations, with analysts polled by Bloomberg anticipating $10.88 billion.
The company reiterated its full-year 2025 forecast of $43.5 billion to $44.5 billion in revenue growth and operating margins of 29%. This is a notable achievement, considering the uncertain economic environment dominated by President Trump’s trade war.
Netfli’s share price has surged 9.2% this year, outperforming its peers including Apple, Amazon, and Alphabet. The company credits its results to “slightly higher subscription and ad revenue.”
In a surprising move, Netflix disclosed subscriber numbers for the first time without reporting them in the earnings release. Instead, the company highlighted its focus on driving greater engagement and top-line growth, particularly through expanding its international footprint.
The company added 41 million global subscribers last year and has set ambitious financial goals, including doubling revenue by 2030. Netfli’s market cap is currently around $400 billion, with co-CEO Ted Sarandos emphasizing the company’s long-range thinking in its earnings call.
Password-sharing crackdowns helped boost subscriber figures, but their impact will slow down in the near term. The company expects further upside from its content slate, particularly its ad tier, which could serve as a catalyst for capturing new users.
Source: https://finance.yahoo.com/news/netflix-stock-rises-after-earnings-outlook-top-wall-street-forecasts-202118375.html