Netflix tops Q2 earnings forecast with help from Squid Game, raises 2025 revenue guidance
The final season of Squid Game boosts Netflix’s Q2 earnings, but investors remain cautious as growth expectations taper.
- Jul 18, 2025,
- Updated Jul 18, 2025 2:21 PM IST
Netflix exceeded Wall Street’s second-quarter expectations, thanks in part to the global popularity of the final season of Squid Game. The streaming company also raised its revenue forecast for 2025, citing robust subscriber growth, higher ad sales and the impact of a weaker US dollar.
The company reported diluted earnings per share of $7.19, narrowly beating analyst estimates of $7.08, according to LSEG data. Net income for the quarter stood at $3.1 billion, slightly ahead of forecasts, while revenue reached $11.08 billion, just above the expected $11.07 billion.
Despite this, shares of Netflix dropped 1.8% to $1,251.86 in after-hours trading on Thursday. Analysts suggested that investors had anticipated a stronger upward revision to the company’s full-year guidance.
Netflix has revised its 2025 revenue forecast to between $44.8 billion and $45.2 billion, up from a previous high of $44.5 billion. It attributed the increase to “healthy member growth and ad sales.”
Squid Game, the Korean dystopian drama that holds the title of Netflix’s most-watched non-English series, returned for its third and final season just before the end of June. According to the company, the new season garnered 122 million views in a matter of days.
Other series released during the quarter included Sirens, The Four Seasons, and the third season of Ginny & Georgia.
Netflix has been investing in live content, including events like WWE, and has continued to expand its ad-supported tier. While advertising is not yet a primary source of revenue, it is a growing focus for the company. Netflix has stopped reporting quarterly subscriber figures, encouraging investors to instead track profitability as a measure of progress. It said member growth outpaced internal forecasts but occurred too late in the quarter to significantly influence revenue.
Looking ahead, the company has forecast $11.5 billion in revenue and net income of nearly $3 billion for the third quarter. Analysts had projected $11.3 billion and $2.9 billion, respectively.
Two major series are expected to return later this year. The second season of Wednesday is scheduled for August, and the final episodes of Stranger Things will roll out in November and December.
Asked about potential acquisitions, Chief Financial Officer Spencer Neumann struck a cautious tone. “We’ve historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook,” he said during a post-earnings video call.
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Netflix exceeded Wall Street’s second-quarter expectations, thanks in part to the global popularity of the final season of Squid Game. The streaming company also raised its revenue forecast for 2025, citing robust subscriber growth, higher ad sales and the impact of a weaker US dollar.
The company reported diluted earnings per share of $7.19, narrowly beating analyst estimates of $7.08, according to LSEG data. Net income for the quarter stood at $3.1 billion, slightly ahead of forecasts, while revenue reached $11.08 billion, just above the expected $11.07 billion.
Despite this, shares of Netflix dropped 1.8% to $1,251.86 in after-hours trading on Thursday. Analysts suggested that investors had anticipated a stronger upward revision to the company’s full-year guidance.
Netflix has revised its 2025 revenue forecast to between $44.8 billion and $45.2 billion, up from a previous high of $44.5 billion. It attributed the increase to “healthy member growth and ad sales.”
Squid Game, the Korean dystopian drama that holds the title of Netflix’s most-watched non-English series, returned for its third and final season just before the end of June. According to the company, the new season garnered 122 million views in a matter of days.
Other series released during the quarter included Sirens, The Four Seasons, and the third season of Ginny & Georgia.
Netflix has been investing in live content, including events like WWE, and has continued to expand its ad-supported tier. While advertising is not yet a primary source of revenue, it is a growing focus for the company. Netflix has stopped reporting quarterly subscriber figures, encouraging investors to instead track profitability as a measure of progress. It said member growth outpaced internal forecasts but occurred too late in the quarter to significantly influence revenue.
Looking ahead, the company has forecast $11.5 billion in revenue and net income of nearly $3 billion for the third quarter. Analysts had projected $11.3 billion and $2.9 billion, respectively.
Two major series are expected to return later this year. The second season of Wednesday is scheduled for August, and the final episodes of Stranger Things will roll out in November and December.
Asked about potential acquisitions, Chief Financial Officer Spencer Neumann struck a cautious tone. “We’ve historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook,” he said during a post-earnings video call.
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