Netflix Inc

Netflix posted a strong second quarter for fiscal 2025, beating Wall Street expectations on both the top and bottom lines as surging profitability and broad-based subscriber momentum defined the period. The streaming giant reported diluted EPS of $7.19, ahead of the $7.06 consensus estimate by 1.89%, while revenue climbed 15.9% year over year to $11.08 billion, edging past the $11.04 billion consensus by 0.40%. The headline driver was a dramatic expansion in operating income, which jumped 45% year over year to $3.77 billion as operating margin widened to 34.1% from 27.2% a year ago, fueled by member growth, higher subscription pricing, and a rapidly scaling advertising business. Despite the strong print, the stock slipped in after-hours trading, raising questions about whether recent record highs had already priced in the upside. Looking ahead, Netflix raised its full-year 2025 revenue outlook to $44.80 billion-$45.20 billion and lifted its free cash flow forecast to $8.00 billion-$8.50 billion, signaling continued confidence in its growth trajectory.