Stacy Pereira
- Netflix posted Q2 revenue growth of 16% at $11.08 billion, beating estimates
- The company increased its full-year revenue forecast, pointing to strong subscriber growth and robust ad sales.
- Shares of Netflix dipped in after-hours trade, falling over 1% to trade at $1252 on Friday.
Streaming major Netflix delivered a standout Q2 2025 performance, boosted by sequel of Squid Games and Ginny & Georgia. The OTT giant reported $11.08 billion in revenue, improving 15.9% (YoY) while net income hit $3.13 billion and EPS at $7.19, in Q2, surpassing Wall Street expectations.
The company revised its full-year revenue outlook, projecting earnings between $44.8 billion and $45.2 billion, an increase from the previous estimate of $43.5 billion to $44.5 billion. The raised forecast takes into account the U.S. dollar’s recent decline against other major currencies.
AI-powered content & production
CEO Ted Sarandos said that Netflix will be increasing its use of generative AI, particularly in production workflows like VFX. For example, the Argentine sci‑fi series ‘The Eternaut’ used AI-enhanced visuals, slashing both time and costs for the OTT platform. Management also highlighted that “AI represents an incredible opportunity to help creators make films and series better, not just cheaper.”
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Netflix is on track to double ad sales, thanks to the full deployment of its proprietary ad-tech stack in all markets. Nasdaq had reported Co‑CEO Greg Peters saying that the streaming platform is witnessing a strong advertiser uptake, with enhanced targeting and measurement capabilities, and plans for interactive ads later this year.
“As Netflix continues to grow, it’s clear that the company’s strategy is firing on all cylinders,” said Josh Gilbert, Market Analyst at eToro. “The focus on diversifying revenue—through advertising, live sports, and localized content—puts Netflix in a strong position to capture even more market share globally.”
Netflix is doubling down on AI, live events, and ad‑tier monetization, allowing it to differentiate from competitors like YouTube and Disney+. While YouTube still leads in total screen time, Netflix remains top in paid subscribers and is maximizing revenue per user.
Despite the strong beat, shares dipped 1–2% after hours as investors noted guidance was solid but cautious. The stock, however, is up roughly 40–45% YTD, trading near record highs.
