Netflix, budget show: 3.1 billion profit in Q2 and rosy outlook
The streaming leader's shares have almost doubled in the last year and its market value has exceeded USD 500 billion
3' min read
3' min read
Netflix put on a good show in the second quarter, beating budget expectations and above all improving its forecast for the year. The streaming king raised the curtain on earnings of $3.13 billion, up 46% to $7.19 earnings per share. The average estimate of 11 analysts tracked by Zacks Investment Research was $7.07 per share in earnings.
The company also did well with revenues: they rose 16% to $11.08 billion. The operating margin, a key measure of profitability, was also positive: it was 34.1%, beating last year's 27.2% and the 33.3% predicted.
For the current quarter and beyond, Netflix expects to continue on an encouraging path: it expects revenues of around USD 11.53 billion in the period between June and September. And for the year it anticipates between 44.8 and 45.2 billion. This target is better than the range of 43.5 to 44.5 billion indicated so far. The forecast for the annual operating margin also improves, to 29.5 per cent from 29 per cent. The group could reach more than ten billion in annual profits for the first time.
The effect of the weak dollar
.While many rival media companies are liquidating assets and cutting costs, Netflix Inc. is showing continued prosperity. The second quarter is historically slow for Netflix, which typically acquires new customers early and late in the year. However, the company released a steady stream of successful programmes, including two of the year's most-watched titles: the third season of Ginny & Georgia and the final season of Squid Game. KPop Demon Hunters, released on 20 June, was one of its best animated films. Success was also enjoyed by other series such as Adolescence and Zero Day, among the most-watched shows of the first half of 2025.
The company has also benefited from a weaker dollar, with international growth now seeing more than two thirds of its users outside the US. For the past two quarters, Netflix has not given subscriber numbers, stating that the best measures of its performance are now profits and revenue.
