Netflix (NASDAQ: $NFLX) is a global streaming service that offers numerous award-winning movies, TV shows, and more via internet-connected devices. On Thursday, April 16, 2025, after markets closed, Netflix released its first quarter fiscal 2025 results.
Netflix Q125 Results
For the first quarter of fiscal 2025, Netflix reported $10.54 billion in revenue, a 12.5% YoY increase, and above estimates of $10.52 billion. It reported a net income of $2.89 billion or $6.61 per share, compared to $2.33 billion or $5.28 per share last year, beating estimates of $5.71.
The company reported an operating income of $3.35 billion, compared to $2.63 billion last year, for an operating margin of 31.7%, compared to 28.1% last year.
Netflix ended the quarter with $2.79 billion in net cash from operating activities, an improvement from the $2.21 billion reported last year. At the end of the quarter, it had $2.66 billion in free cash flow, compared to $2.14 billion last year.
Price Hikes And Forecast
In January, Netflix raised its monthly prices to $7.99 for the ad-supported tier from $6.99 and the standard plan to $17.99 from $15.49. Its premium tier is now $24.99 from the previous $22.99.
The company expects full-year revenue of $43.5 billion to $44.5 billion, below analystsā forecast of $44.27 billion. It expects $11.04 billion in Q2, beating estimates of $10.91 billion.
Netflix And Potential Tariffs Impact
During the earnings call, Gregory K. Peters, Co-CEO, President & Director, stated that the company was paying close attention to consumer sentiment and the general direction of the economy. However, he remains confident about the direction of the business right now.
Netflixās current dominant market position gives it an edge. If the economy enters a recession, and consumers begin to review their subscriptions, it is likely that Netflix will remain the default option.
Market Performance
Following the stellar Q1 results and optimistic outlook, NFLX shares were up 3.39% in after-hours trading to $1,006 as of 7:59 PM EDT on April 17, 2025, before the markets closed for Easter. It is likely the trend will carry on into Tuesday when the markets reopen.
Analysts are optimistic about the future of NFLX shares, giving them a moderate buy rating. They forecast an average price of $1,120.32, which is a 15.14% upside based on Thursdayās closing price of $973.03. The analysts forecast a wide range of price targets, with a high of $1,494 and a low of $833.
Is Netflix A Buy After The Q1 Results?
Netflix is one of the biggest streaming platforms in the world, and holds around 21% of the global market share. It is also quite popular in numerous markets worldwide, which provides it with a bigger moat in case of a global economic crunch. Management remains confident about its future performance, which is great news for investors. Consequently, adding NFLX to your portfolio could potentially pay off in the long and medium term.
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