Netflix exceeds expectations in latest earnings report — and predicts profits will rise despite economic uncertainty

Netflix exceeded Wall Street expectations in its quarterly earnings study and offered a bullish gross outlook connected Thursday, signaling assurance amid nan economical uncertainty surrounding President Trump’s erratic tariff plans.

Shares of nan institution were astir level successful after-hours trading astatine $970.10.

The streaming elephantine besides said its co-founder Reed Hastings had near his station arsenic executive president to go nan board’s non-executive chair, “part of nan earthy improvement of our activity building and succession planning.”

Netflix reported gross of $10.54 billion for nan first quarter, edging past analysts’ estimates of $10.52 billion, according to information compiled by LSEG.

Diluted per-share net of $6.61 exceeded consensus estimates of $5.71. The institution released hits specified arsenic nan constricted bid “Adolescence,” play thriller “Zero Day” and nan unscripted bid “Temptation Island” during nan quarter.

Looking ahead, nan institution projected gross would emergence to $11.04 cardinal for April done June, supra nan expert statement of $10.90 billion, “driven chiefly by rank maturation and higher pricing.”

Analysts person raised nan anticipation that Trump’s economical policies could lead to a recession that makes consumers reconsider their streaming spending.

But Netflix is improbable to spot “a activity of churn” fixed its beardown marketplace position and celebrated content, wrote Bank of America media expert Jessica Reif Ehrlich, though immoderate cost-conscious subscribers whitethorn waste and acquisition down to a cheaper value tier.

Consumers person flocked to Netflix’s lower-priced, ad-supported tier since its motorboat successful precocious 2022. Netflix said this type of its work accounts for 55% of its caller sign-ups successful countries wherever it is available.

Netflix dominates nan streaming video marketplace pinch much than 300 cardinal world subscribers. In January, the institution reported it had added a grounds 18.9 cardinal subscribers successful nan 4th fourth of 2024.

This quarter, Netflix declined to disclose subscriber numbers successful bid to stress different capacity metrics including gross and profit. Analysts person said they judge nan alteration signals slower subscriber maturation ahead.