Netflix set to kick off tech earnings season with strong revenue, profit growth
Published: 15:44 14 Jul 2025 EDT
Netflix Inc (NASDAQ:NFLX, ETR:NFC) is set to report strong revenue growth and improved profitability for the second quarter when it hands down its highly anticipated report after markets close on Thursday.
“The fact that Netflix is the first of the major tech names to report earnings also means that this report will generate a lot of attention in the coming days,” XTB research director Kathleen Brooks said.
Wall Street analysts on average expect Netflix to report revenue $11.04 billion, up from $10.54 billion in the first quarter and $9.56 billion in the year-ago period.
“We will be watching to see if this came from advertising revenue, or from subscriber growth, although Netflix no longer provides subscriber numbers with its earnings reports,” Brooks noted.
Earnings per share are expected to increase almost 45% from the same period in 2024 to $7.05. Net income is set to rise to $3.17 billion.
Brooks added that at 46.6 times 12-month forward earnings, Netflix stock is not cheap.
While this relatively high valuation reflects strong market confidence, it implies limited room for error when it comes to its Q2 earnings.
The company’s shares traded hands at $1,265 on Monday afternoon, up almost 42% so far this year.
“Since reaching a high on 30th June, the stock has backed up to the 50-day simple moving average, where it is finding good support,” Brooks noted. “However, over the last eight quarters, the stock has risen by an average of 8.15% in the 24 hours after an earnings report.”
