Netflix has surpassed expectations in its latest earnings report, thanks in part to the global success of the final season of Squid Game.
The Korean hit helped boost second-quarter results and prompted the streaming giant to raise its full-year revenue forecast.
The company now expects to generate between $44.8bn and $45.2bn in revenue for 2025—up from a previous high-end estimate of $44.5bn.
The improved outlook is being credited to strong subscriber growth, robust ad sales, and a weaker US dollar.
Despite these gains, Netflix stock dipped slightly in after-hours trading, falling 1.8% to $1,251.86.
This follows a nearly 44% surge in the share price earlier in the year, which had already priced in high investor expectations.
Some analysts said investors were hoping for a stronger upward revision to the guidance.
For the April to June period, Netflix posted diluted earnings of $7.19 per share, exceeding analysts’ consensus of $7.08.
Revenue came in at $11.08bn, narrowly ahead of forecasts, while net income hit $3.1bn.
Netflix has been steadily expanding its content strategy beyond traditional shows and films.
Its ad-supported tier, aimed at more price-conscious viewers, continues to grow, though advertising remains a secondary revenue driver for now.
Live events, including WWE wrestling, are also being used to attract both subscribers and advertisers.
Squid Game, which wrapped up with its third season just before quarter-end, amassed over 122 million views—making it Netflix’s most popular non-English language show ever.
Other notable releases in the quarter included Sirens, The Four Seasons, and season three of Ginny & Georgia.
Looking ahead, the platform expects Q3 revenue of $11.5bn and net income close to $3bn.
Key upcoming titles include season two of Wednesday in August and the final episodes of Stranger Things in November and December.
Netflix has stopped reporting quarterly subscriber numbers, instead focusing on profitability as its primary success metric.
CFO Spencer Neumann reaffirmed the company’s commitment to organic growth, stating, “We’ve historically been builders, not buyers—and that approach remains unchanged.”
