Netflix Inc (NASDAQ:NFLX, XETRA:NFC) reported first quarter financial results that topped Wall Street expectations, with stronger-than-anticipated revenue and earnings driven by membership growth, pricing adjustments, and expanding advertising income. For the first quarter, Netflix posted revenue of $12.25 billion, slightly above analyst estimates of $12.18 billion.
Netflix slightly beat revenue and operating income estimates in its first quarter earnings. Shares tumbled in after-hours trading after weak guidance for the second quarter.
Shares of Netflix fell sharply on Thursday after the company announced that co-founder and chairman Reed Hastings will step down, even as the streaming giant reported better-than-expected first-quarter results. The stock declined around 8% in after-market trading after the announcement, reflecting investor concern over leadership changes at a time when the company is navigating a competitive streaming landscape and recalibrating its growth strategy.
Netflix topped Wall Street expectations for earnings and revenue in the first quarter, but the streaming giant's shares still took a dive in after-hours trading Thursday. Revenue rose 16% from the year-ago period to hit $12.25 billion, while diluted earnings per share came in at $1.23, nearly double a year ago.
Netflix reports first-quarter earnings after the market closes on Thursday. Wall Street expects earnings per share of 76 cents and revenue of $12.18 billion, according to LSEG.
Stock futures are slightly higher this morning after the S&P 500 and the Nasdaq closed at record highs on Wednesday; oil prices are rising again as the Strait of Hormuz remains largely closed, with Pakistani officials looking to schedule a second round of peace talks between the U.S. and Iran; Netflix is scheduled to release quarterly results after the closing bell today, its first report since abandoning plans to acquire Warner Bros. Discovery; Spirit Airlines is reportedly considering liquidation as high fuel prices caused by the Iran war threaten the discount airline's bankruptcy restructuring plan; and PepsiCo topped Wall Street's earnings estimates thanks to solid international sales growth.
Netflix is getting back to basics after bowing out of the bidding war for Warner Bros. The company has raised prices and is looking to expand its ad business.
Visible Alpha consensus is expecting $12.2 billion in revenue for Q1 and $51.4 billion for FY 2026. The streaming giant expects to grow revenues by increasing engagement trends and reducing churn while offering a more diverse entertainment offering. Netflix remains upbeat about the long-term opportunity for advertising, given the size of its user base.
Netflix Inc (NASDAQ: NFLX) remains in focus ahead of its Q1 earnings after the bell, as investors weigh whether the pioneer of binge-watching can maintain momentum in an increasingly crowded and cost-conscious digital landscape. For the first quarter, Wall Street is hunting for substantial growth, with consensus estimates pegged at $12.17 billion in revenue, representing a rather strong 15.4% increase on a year-over-year basis.
After reaching an important support level, Netflix (NFLX) could be a good stock pick from a technical perspective. NFLX surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
DIS and NFLX battle for streaming dominance as both chase profitability, scale content and refine monetization strategies in an evolving industry.
Netflix is scheduled to report earnings after markets close Thursday, with traders expecting a big move from the streaming giant's stock following the results.