Netflix (NFLX) Beats Q2 Earnings Forecast, Raises Full-Year Outlook

Actual vs Estimates

• EPS: $7.19 (Est. $7.05)
• Revenue: $11.08B (Est. $11.04B)
• Y/Y Revenue Growth: +16% (+17% FX-neutral)

Profitability

• Operating Income: $3.77B (+45% Y/Y)
• Operating Margin: 34.1% (vs. 27.2% a year ago)
• Net Income: $3.13B (+46% Y/Y)
• Free Cash Flow: $2.27B

Q3 Forecast

• Revenue: $11.53B
• Operating Margin: 31.5%
• EPS Guidance: $6.87

🎬 Highlights

• Ad Business: Netflix Ads Suite fully rolled out; ads revenue expected to double in 2025.
• Product: New TV homepage rolled out to 50% of users, showing strong engagement.
• Full-Year Outlook Raised:
  • Revenue: $44.8B–$45.2B (up from $43.5B–$44.5B)
  • Operating Margin: 30% (was 29%)
• Initial reaction to earnings After hours stock trading at $1,253.84 −20.33 (-1.60%)

Netflix is delivering both growth and margin expansion, driven by successful original content, a growing ad business, and favorable FX tailwinds.