- Netflix has increased its full-year revenue forecast to a range of $44.8 billion to $45.2 billion, up from the previous outlook of $43.5 billion to $44.5 billion, surpassing the market’s estimate of $44.56 billion.
- The company expects a full-year operating margin of 29.5%, slightly below the estimate of 29.7% but above the previous outlook of 29%.
- Netflix forecasts free cash flow between $8 billion and $8.5 billion for the year, whereas earlier guidance outlined about $8 billion, with an estimate of $8.91 billion.
- Revenue from advertisements is anticipated to double, affirming substantial growth in this area.
- For the third quarter, Netflix expects revenue of $11.53 billion, surpassing the market estimate of $11.28 billion.
- The company projects an earnings per share (EPS) of $6.87 for the third quarter, exceeding the forecasted $6.70.
- Operating income for the third quarter is estimated at $3.63 billion, higher than the market expectation of $3.47 billion, with an operating margin of 31.5% versus the estimate of 31.4%.
- In the second quarter, Netflix achieved revenue of $11.08 billion, marking a 16% increase year-over-year, slightly above the market’s forecast of $11.06 billion.
- US & Canada revenue reached $4.93 billion, a 15% year-over-year increase, topping the estimate of $4.89 billion.
- Revenue in EMEA saw an 18% year-over-year growth to $3.54 billion, exceeding the estimate of $3.5 billion.
- Latin America’s revenue was $1.31 billion, with an 8.6% increase year-over-year, slightly below the estimated $1.34 billion.
- APAC revenue also amounted to $1.31 billion, reflecting a 24% year-over-year growth, marginally below the estimate of $1.32 billion.
- Second quarter EPS was reported at $7.19, up from $4.88 year-over-year, surpassing the estimate of $7.08.
- Operating income increased by 45% year-over-year to $3.78 billion, higher than the expected $3.69 billion, with an operating margin of 34.1% compared to the estimate of 33.6%.
- Cash flow from operations rose by 88% year-over-year to $2.42 billion, exceeding the estimate of $2.38 billion.
- Free cash flow for the second quarter reached $2.27 billion, an 87% increase year-over-year, ahead of the estimated $2.17 billion.
- The full-year forecast was adjusted upward due to the depreciation of the US dollar against most other currencies, alongside ongoing business momentum driven by robust member growth and ad sales.
- The company noted that the response to recent price adjustments has been “broadly in line with expectations.”
- Netflix received 120 prime-time Emmy nominations earlier this week, highlighting its strong influence and content development success.
Netflix Inc on Smartkarma
Analyst coverage of Netflix Inc on Smartkarma reveals a positive sentiment from Baptista Research. One report titled “Netflix Is Going Unscripted” highlights the streaming giant’s strategic shift towards unscripted entertainment, including music shows and reality TV, aiming to broaden its appeal. Another report, “Netflix Faces The Heat & The Spotlight,” discusses Netflix’s strong market performance in 2025, with a share price up over 30% year-to-date. Additionally, “Netflix EXPANDS In The Gaming Arena” emphasizes the company’s strong positioning in the media landscape, as evidenced by its first-quarter 2025 earnings exceeding analyst expectations.
Baptista Research‘s coverage also includes insights on Netflix’s subscriber growth and financial metrics. The report “Netflix Soars to New Heights” notes the streamer’s impressive 19 million net addition of subscribers in Q4 2024, leading to a record high stock price. These reports underscore Netflix’s evolving business strategy, robust financial performance, and strategic shifts, positioning it as a key player in the ever-changing streaming industry according to Smartkarma’s independent analysts.
A look at Netflix Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Netflix Inc. demonstrates a positive long-term outlook. The company’s strong scores in growth, resilience, and momentum indicate a promising future ahead. With a high growth score of 4, Netflix is positioned for continued expansion and development in the streaming industry. Additionally, its resilience score of 4 signifies the company’s ability to weather challenges and adapt to changing market conditions, giving it a competitive edge in the long run. Moreover, Netflix’s momentum score of 5 suggests that it is gaining traction and investor interest, further bolstering its long-term prospects.
Although Netflix scores lower in value and does not offer dividends, its robust performance in growth, resilience, and momentum outweigh these factors, pointing towards a bright future for the company. With its innovative approach to content streaming and a solid subscriber base, Netflix Inc. is well-positioned to maintain its leading position in the market and capitalize on the evolving digital entertainment landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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