Netflix reported strong earnings for the April-June quarter, continuing its trend of steady growth, but still fell short of some investors' higher expectations.

The streaming giant earned $3.1 billion in net income, or $7.19 per share, marking a 46% year-on-year increase. Revenue rose 16% to $11.08 billion, aligning closely with analysts’ projections. The company also slightly raised its full-year revenue forecast, expressing optimism that a strong content slate will attract more subscribers in the second half of the year.

“We’re incredibly excited about the rest of this year and confident heading into 2026,” said Netflix co-CEO Ted Sarandos during a video call with analysts.

Despite the upbeat results, Netflix shares dipped 1% in after-hours trading, as some investors had hoped for a more aggressive upgrade to full-year guidance, said Thomas Monteiro, an analyst at Investing.com.

Netflix’s stock has gained 43% so far this year, driven largely by the success of its ad-supported tier introduced in late 2022 after a subscriber slump. The service now boasts over 300 million subscribers, though Netflix stopped releasing quarterly subscriber figures at the start of this year.

The platform continues to perform well in both content and advertising. It recently received 120 Emmy nominations, second only to HBO Max. Popular shows like Sirens, Ginny & Georgia, and The Four Seasons, alongside wrestling, boxing, and NFL content, have helped retain and grow its audience.

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Netflix’s advertising business is also gaining momentum, with the company projecting ad revenue to double this year.

Though largely insulated from President Donald Trump’s trade policies, Netflix could face future risks if proposed tariffs on foreign entertainment are enacted. In a move seemingly aimed at easing concerns, Netflix highlighted its $125 billion investment in U.S. productions between 2020 and 2024 in its quarterly letter.

Source: Agency