The final season of Netflix’s global hit Squid Game helped the streaming giant surpass Wall Street’s second-quarter earnings expectations, but not without some investor hesitation over its guidance for the rest of 2025.
Netflix reported $7.19 in diluted earnings per share, slightly beating the $7.08 consensus estimate, and a net income of $3.1 billion for the quarter ending in June. Revenue hit $11.08 billion, just ahead of analysts’ forecast of $11.07 billion.
The company also raised its full-year revenue guidance to a range of $44.8 billion to $45.2 billion, citing favorable foreign exchange movements, steady ad sales, and stronger-than-expected membership growth. Still, some analysts saw the revision as underwhelming.
“The full-year outlook now feels quite conservative, which is problematic for a stock priced for perfection,” said Thomas Monteiro of Investing.com.
“At this stage, the company appears overly dependent on further price increases — at least through 2026 — to drive revenue.”
Despite a nearly 44% stock gain in 2024, Netflix’s share price dipped 1.8% to $1,251.86 in after-hours trading following the earnings call.
The release of Squid Game’s third and final season near the end of the quarter was a major driver of engagement, drawing 122 million views and reinforcing its place as the most-watched non-English title in Netflix history. Other content highlights included Sirens, The Four Seasons, and Ginny & Georgia Season 3.
Looking ahead, the company expects $11.5 billion in revenue and nearly $3 billion in net income for the current quarter, both slightly ahead of analyst projections.
Netflix continues to lean into live content and its ad-supported tier to attract new viewers and advertisers, though it maintains that advertising won’t be the main growth engine for now.
Chief Financial Officer Spencer Neumann, responding to speculation about acquiring legacy media assets, emphasized restraint:
“We’ve historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook.”
Upcoming releases include new seasons of blockbuster series Wednesday (August) and Stranger Things (November–December), positioning Netflix for a strong finish to the year.
