Los Angeles: Netflix executives have reaffirmed their confidence in the company’s growth trajectory, projecting a robust revenue outlook for the year despite lingering concerns over President Donald Trump’s unpredictable tariff strategies.
Following an earnings report that surpassed Wall Street expectations, Netflix co-CEO Greg Peters sought to reassure investors, noting the company has not observed any major changes in customer behavior that might reflect economic anxiety. His remarks were aimed at calming fears that volatile policy moves could dissuade budget-conscious consumers from spending on digital entertainment.
Netflix shares rose 2.7% in after-hours trading. The stock has gained 9% so far this year, outperforming the broader S&P 500 index, which has declined by 10%.
With more than 300 million subscribers worldwide, Netflix has maintained strong momentum globally. Its more affordable, ad-supported subscription tier—launched in late 2022—continues to attract new users. The company reported that this lower-cost plan accounted for 55% of new sign-ups in countries where it is available.
Peters emphasized Netflix’s ability to weather economic downturns, citing historical resilience. “We really do expect the demand to remain strong,” he said, adding that cost-conscious consumers find value in the company’s pricing options.
Meanwhile, co-founder Reed Hastings officially transitioned from his role as executive chairman to non-executive chair, a move described by the company as part of its broader succession strategy.
Co-CEO Ted Sarandos echoed a commitment to staying focused on performance and value creation. “On the things we can control, and improving the value of Netflix is a big one,” Sarandos said. He further noted, “In difficult economies, home entertainment value is really important to consumer households, and Netflix is a tremendous value in absolute terms and certainly in competitive terms.”
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Netflix projects revenue will reach $11.04 billion for the April-to-June quarter, exceeding analysts’ consensus of $10.90 billion. For the full year, the company maintained its forecast of $43.5 billion to $44.5 billion in revenue, citing “healthy member growth, higher subscription pricing and a rough doubling of our ad revenue.”
For Q1, Netflix reported revenue of $10.54 billion, slightly above analysts’ estimate of $10.52 billion, according to LSEG data. Earnings per share came in at $6.61, well above the $5.71 consensus forecast.
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The first quarter featured a slate of new content, including the limited series Adolescence, thriller Zero Day, and reality hit Temptation Island. Netflix credited stronger-than-expected subscription and ad revenue—along with expense timing—for beating its own financial guidance. However, the company acknowledged that advertising revenue remains modest compared to its core subscription income.
Industry expert Paolo Pescatore of PP Foresight said Netflix is well-positioned to endure any economic slowdown. “Netflix is an indispensable service in users’ lives. It will be the last subscription that users will cancel given the broad and breadth of programming,” Pescatore said.
