Netflix beat estimates on revenue and earnings per share last quarter and lifted its full-year guidance, though its share price dipped because of lower third-quarter projections.
Diluted earnings per share were US$7.19, above the $4.88 seen one year ago and LSEG estimates of $7.08. Its revenue was $11.08 billion, passing estimates of $11.07 billion and rising from $9.56 billion year-over-year.
“Our Q2 revenue increased by 16% year over year (17% on a foreign exchange (F/X) neutral basis). Year-over-year revenue growth was primarily a function of more members, higher subscription pricing and increased ad revenue,” wrote Netflix in a letter to shareholders.
Net income was US$3.13 billion, up from $2.15 billion year-on-year. Operating income was $3.78 billion, an increase from $2.60 billion.
Netflix members watched more than 95 billion hours on the platform in 2025’s first half, the company said. Non-English language content represented more than one third of all Netflix viewing during this period.
The company also completed the rollout of its Netflix Ads Suite platform last quarter, including in-house tools for advertisers. “We continue to make progress building our ads business and still expect to roughly double ads revenue in 2025,” according to Netflix.
Netflix raised its full-year guidance to project US$44.8-45.2 billion in revenue across 2025, up from its previous expectations of $43.5-44.5 billion.
Its third-quarter forecast, however, includes a dip in operating income and earnings per share from Q2. Next quarter, Netflix predicts operating income to reach US$3.63 billion, with diluted earnings per share at $6.87.
Netflix’s share price closed at US$1,274.17, but dropped to $1,254.04 in after-hours trading following the release. Its market capitalisation is $542.25 billion.
