Nasdaq 100: Netflix Surges After Q1 Beat, Eyes Stronger Revenue Forecast

Netflix Beats Q1 Estimates, Lifts Revenue Outlook

Netflix reported stronger-than-expected Q1 results Thursday, buoyed by solid subscriber engagement and pricing power, and issued an upbeat revenue forecast that suggests confidence despite broader economic uncertainty. Earnings per share came in at $6.61, topping consensus of $5.71, while revenue reached $10.54 billion, edging past the $10.52 billion expected.

After hours, NFLX is trading $1017.04, up $44.01 or 4.52%. This is in addition to Thursday’s 1.19% advance.

What’s Driving Netflix’s Top-Line Growth?

Revenue rose 13% year-over-year, driven by a mix of subscription price hikes and growing adoption of the ad-supported tier. The company raised its subscription fees across all plans in January, with its standard plan now at $17.99 and the ad-supported tier at $7.99. These adjustments contributed to a revenue beat that surpassed both internal and analyst projections.

Netflix’s shift in pricing strategy appears to be paying off. The company said that its ad-supported plan now accounts for 55% of new sign-ups in available markets. Though economic concerns tied to President Trump’s trade policy loom over the broader consumer landscape, Bank of America analysts noted that Netflix’s strong content slate and brand strength should buffer it from mass cancellations.

Why Did Netflix Skip Subscriber Numbers This Quarter?

In a notable shift, Netflix did not report subscriber growth figures, breaking from tradition. Instead, it emphasized performance metrics like revenue and profit. This change is seen as a pivot toward profitability and market monetization rather than pure subscriber growth. Analysts have interpreted the move as a possible sign of slower subscriber additions ahead, though the company continues to lead the global streaming space with over 300 million users.

Leadership Update Signals Long-Term Transition

Co-founder Reed Hastings stepped down as executive chairman, transitioning to non-executive chair in what Netflix called a natural evolution in leadership. The company continues to evolve its governance as it matures and scales in a more competitive media environment.

What’s Next for Traders to Watch?

Netflix guided for second-quarter revenue of $11.04 billion, above the $10.90 billion analyst consensus. This forward view, combined with a solid Q1 performance and stable outlook, positions the stock favorably. However, with subscriber transparency reduced and consumer discretionary spending under pressure, traders will focus closely on margin performance and ad-tier monetization in upcoming quarters.

More Information in our Economic Calendar.