Netflix Raises Full-Year Revenue Guidance Above $44.8 Billion on Q2 Growth

Netflix reported strong second-quarter 2025 results, with revenue reaching $11.08 billion, a 16% increase year-over-year, and earnings per share of $7.19, both exceeding analyst expectations. The company raised its full-year revenue guidance to $44.8 billion–$45.2 billion, reflecting improved member growth, advertising revenue, and foreign exchange benefits, while also increasing its operating margin target to 29.5%. Key growth drivers include price increases, advertising sales that are ahead of expectations, and popular content releases such as the third season of "Squid Game," which amassed 122 million views. Despite solid performance and an optimistic outlook for the third quarter, Netflix shares fell slightly in after-hours trading, influenced by the stock's significant year-to-date gains and high valuation multiples. Analysts remain generally positive, with an average brokerage recommendation indicating an "Outperform" rating, though some valuation models suggest potential downside. Netflix continues to invest heavily in content, with content amortization exceeding $16 billion in 2025, and is innovating with new user interfaces and partnerships to bolster its market position amid competitive streaming pressures.