Netflix earnings soar past estimates, but stock still drops

Netflix Q2 Earnings Beat Estimates but Fall Short of Soaring Investor Expectations

Netflix’s second-quarter earnings topped Wall Street estimates and the company raised its full-year revenue forecast, but that wasn’t enough to keep investors from offloading shares.

The streaming giant reported Q2 revenue of $11.08 billion, up 17.3% year-over-year, and slightly above its prior guidance of $11.04 billion. Earnings per share (EPS) came in at $7.19, beating the company’s projection of $7.03 and rising from $4.88 in the same quarter last year.

Despite the strong performance, Netflix shares dipped approximately 1–2% in after-hours trading and fell 4% shortly after the opening bell on Friday.

The drop was largely driven by investor disappointment over subscriber growth, which fell short of sky-high expectations. While revenue exceeded forecasts, it wasn’t seen as a major upside surprise.

“Despite a good quarter and a positive tone that business trends remain strong, shares are up 42% year-to-date and expectations were high,” wrote William Blair analyst Ralph Schackart in a note titled “Good Quarter, but Tough to Surpass High Expectations.”

“In other words,” he added, “an overall 'good' set of results and guide were not good enough for elevated expectations, in our view.”

Netflix now expects full-year 2025 revenue to fall between $44.8 billion and $45.2 billion, up from its previous guidance of $43.5 billion to $44.5 billion.

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