Netflix Beats Q2 Earnings Estimates but Shares Dip on Margin Concerns

Netflix reported stronger-than-expected Q2 2025 earnings, with revenue climbing 16% year-over-year to $11.08 billion, slightly surpassing analyst estimates. Earnings per share jumped 47% to $7.19, driven by subscriber growth, higher pricing, and increased ad revenue. The streaming giant raised its full-year revenue guidance to $45.2 billion and posted a 91% surge in free cash FLOW to $2.3 billion.

Despite the beat, shares fell ~1% in after-hours trading as investors focused on margin concerns. Operating margins expanded to 34.1%, up 7 percentage points year-over-year, but the company's cautious outlook tempered enthusiasm. Netflix has shifted its reporting emphasis from subscriber numbers to profitability metrics, reflecting its maturation in the streaming market.