Netflix exceeded Wall Street expectations for quarterly results and offered a bullish revenue outlook on Thursday, signaling confidence amid the economic uncertainty surrounding President Donald Trump’s erratic tariff plans.
Shares of the company were roughly flat in after-hours trading at $970.10.
The streaming giant also said its co-founder Reed Hastings had left his post as executive chairman to become the board’s non-executive chair, “part of the natural evolution of our leadership structure and succession planning.”
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Netflix reported revenue of $10.54 billion for the first quarter, edging past analysts’ estimates of $10.52 billion, according to data compiled by LSEG.
Diluted per-share earnings of $6.61 exceeded consensus estimates of $5.71. The company released hits such as the limited series “Adolescence,” drama thriller “Zero Day” and the unscripted series “Temptation Island” during the quarter.
Looking ahead, the company projected revenue would rise to $11.04 billion for April through June, above the analyst consensus of $10.90 billion, “driven primarily by membership growth and higher pricing.”
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Analysts have raised the possibility that Trump’s economic policies could lead to a recession that makes consumers reconsider their streaming spending.
But Netflix is unlikely to see “a wave of churn” given its strong market position and popular content, wrote Bank of America media analyst Jessica Reif Ehrlich, though some cost-conscious subscribers may trade down to a cheaper price tier.
Consumers have flocked to Netflix’s lower-priced, ad-supported tier since its launch in late 2022. Netflix said this version of its service accounts for 55% of its new sign-ups in countries where it is available.
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Netflix dominates the streaming video market with more than 300 million global subscribers. In January, the company reported it had added a record 18.9 million subscribers in the fourth quarter of 2024.
This quarter, Netflix declined to disclose subscriber numbers in order to emphasize other performance metrics including revenue and profit. Analysts have said they believe the change signals slower subscriber growth ahead.