Netflix (NFLX, Financial) shares rose about 1.95% at $992 as of 7:54:06 AM ET in pre‑market trading, after the company's first‑quarter results beat expectations across profit, revenue and margins.
The company posted earnings per share of $6.61 under generally accepted accounting principles, beating estimates by $0.95. Revenue reached $10.54 billion, a 12.5% increase from a year earlier and $40 million ahead of projections. Operating income climbed to $3.3 billion, up 27% year over year, while the operating margin rose to 32%, slightly ahead of internal targets due to stronger-than-anticipated sales and delayed expenses.
For the second quarter, Netflix anticipates 15% revenue growth (17% on a foreign exchange-neutral basis), citing pricing changes and increased ad and membership revenue. The company expects a 33% operating margin, marking a 6-point gain from a year ago.
Netflix reaffirmed its 2025 revenue guidance of $43.5 billion to $44.5 billion, near analyst consensus, and aims for a 29% operating margin. While foreign exchange shifts have been favorable recently, no major change has been made to the overall business forecast.
Analysts highlighted Netflix's resilience amid economic uncertainty and underscored advertising's potential. Bank of America reaffirmed its Buy rating with a $1,175 price target, citing subscriber growth and live content initiatives as long-term drivers.
