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Netflix Tops Q2 Earnings Estimates, Raises Full-Year Guidance

Strong advertiser demand, hit releases plus price increases are fueling Netflix’s ad-supported tier expansion as it pursues higher profitability.

FILE- In this Nov. 4, 2017, file photo, the logo of entertainment company Netflix is pictured in Paris. (AP Photo/Christophe Ena, File)
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Overview

  • Netflix posted second-quarter revenue of $11.08 billion and earnings per share of $7.19, beating Wall Street targets.
  • Net income climbed 46 percent year-over-year to $3.1 billion, lifting operating margins to 34.1 percent.
  • January subscription price hikes drove 15 percent revenue growth in the U.S. and Canada while keeping churn low.
  • The final season of Squid Game attracted 122 million global views, strengthening engagement for advertisers.
  • The company raised its 2025 revenue guidance to $44.8 billion–$45.2 billion and expects to roughly double ad revenue this year as it grows its ad-supported tier and live events lineup.