Netflix Logs Record Profit in Quarter, Withholds User Data

Netflix Inc. reported record profit to start the year, allaying concerns of a slowdown or fears the streaming leader might be hurt by growing economic uncertainty.

First-quarter earnings rose 25% to $6.61 a share, the company said Thursday, easily beating analysts’ estimates. Sales grew to $10.5 billion, in line with projections. The results were boosted by a recent price increase and a strong slate of programming across the globe, like the hit UK series Adolescence.

Investors have come to see Netflix as a safe bet during a time of great economic uncertainty and challenges for conventional movie and TV businesses. With a global audience of more than 700 million viewers, the company said it has seen no impact on its business from President Donald Trump’s tariffs or the market volatility that has followed.

“We’re paying close attention to consumer sentiment and where the broader economy is moving,” co-Chief Executive Officer Greg Peters said on a call with analysts. “Based on what we’re seeing, there is nothing significant to note.”

Entertainment has been resilient during past recessions, Peters said, and Netflix has rolled out lower-priced subscription plans that give consumers an alternative if they want to save money.

Thursday’s report marked the first time Netflix has reported financial results without disclosing how many customers it added or lost — the main yardstick investors previously used to gauge the company’s performance. Management is steering investors to judge its success or failure based on more traditional financial metrics.

The company boosted operating income by 27% to $3.3 billion in the first quarter, beating expectations of $3 billion. Its operating margin of 31.7% was more than three percentage points above its own forecast.

Shares of Netflix rose as much as 5.2% to $1,024 in extended trading after the results were announced. The stock has been a bright spot in a troubled year so far for entertainment stocks, up 9.2% through the close of regular trading Thursday in New York.

While Netflix used to burn through cash to fund its growing slate of shows, the company now delivers billions of dollars in profit and free cash flow. The company projected strong results in the current quarter — forecasting sales will grow 15% to $11 billion and a 44% jump in earnings to $7.03 a share, both above Wall Street projections.

The gains follow the company’s best quarter ever. Netflix added 18.9 million customers to close 2024. Most analysts anticipated the company’s growth will slow in 2025, especially after management raised prices in the US, its largest market.

As subscriber growth slows, Netflix is seeking to make more from the customers that it already has by selling advertising and raising prices. The company is rolling out new advertising technology in the markets where it offers ads and said it’s boosting the price of its service in France.

The company’s performance has long hinged on the caliber of its slate of original programming, which this month also included a new season of its hit show The Night Agent and the debut of WWE Raw. Costs will rise in the second half of the year as it releases more films and new installments of hit shows such as Stranger Things.

The company devoted a significant portion of its quarterly letter to shareholders touting its investment in programming outside of the US, especially in the UK and Mexico. Counterattack, a new film from Mexico, is one of the most popular foreign-language films in Netflix history.

The company also said co-founder and former CEO Reed Hastings will transition from executive chairman to chairman, while venture capitalist Tim Haley will step down from the board after 27 years.

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