Netflix is preparing to release its second-quarter earnings report, and Wall Street is optimistic about the results. Analysts are highlighting various positive indicators that suggest a strong performance.
Netflix Prepares for Q2 Earnings Report
Netflix is set to announce its second-quarter results after the market closes on Thursday, with Wall Street eagerly anticipating a strong start to the media earnings season from the streaming giant.
Analysts’ Optimism
“Currently, we see no scaled global streaming competitor,” stated Oppenheimer analyst Jason Helfstein in a recent note to clients, maintaining an “outperform” rating and increasing the stock price target to $1,425. “The outlook remains ironclad.”
Helfstein and other analysts highlight several positives, including viewership gains, a well-positioned ad tier, price increases in key markets, and a robust programming slate for the second half of the year, driven by significant content spending. Helfstein believes Netflix can monetize its content more effectively than its competitors.
Industry Shifts
“Netflix has established a virtually insurmountable lead in the streaming wars,” echoed Alicia Reese of Wedbush Securities.
The industry is gradually adjusting to a significant change as the company, led by Ted Sarandos and Greg Peters, has stopped reporting quarterly subscriber numbers this year, shifting focus to broader financial performance and strategic outlook. “Investors looking to get constructive on Netflix out of earnings” need to focus elsewhere, Reese noted.
Q2 Revenue Expectations
With renewed attention, the Street anticipates Q2 revenue in the range of $11.04 billion, slightly above the company’s guidance of $11.035 billion. Expectations are high given various positive data points throughout the quarter.
The consensus estimate for earnings per share is $7.06. Investors will also be looking for higher full-year 2025 forecasts, which could boost Netflix shares further. In April, the streaming giant reported strong first-quarter results, with revenue and earnings per share exceeding Street expectations.
Consensus estimates can vary slightly, with Bloomberg estimating $11.06 billion in revenue and $7.09 EPS.
Upcoming Competitors
Following Netflix, Comcast’s Q2 numbers are expected later in July. Other tech giants, including Warner Bros. Discovery and Disney, will follow, with much to discuss during earnings calls. The media industry is at a crucial inflection point, with significant changes occurring. NBCUniversal is spinning out its cable networks, WBD is splitting in half, and Lionsgate and Starz have already separated.
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Netflix shares have risen 41% in 2025 so far, following a strong 2024. They started Thursday’s trading at $1,253, slightly down from their all-time high of $1,341.15 reached in June.
Analyst Predictions
Several analysts have raised their price targets recently. Michael Morris of Guggenheim increased his 12-month outlook to $1,400 from $1,150. He believes the company has “something to prove” amid investor skepticism regarding its early-stage advertising business and programming strategy.
“Management’s outlook for a robust content slate in the second half of the year, along with expanded live content partnerships, will be key to maintaining investor confidence in the long-term global growth potential of the business,” Morris noted.
Despite a conservative stance last quarter due to tariff uncertainties, the advertising market has improved, with more dollars shifting toward CTV, while consumer spending remains resilient. Favorable foreign currency translation effects are also expected to enhance margin performance.
Tariff Concerns
However, Netflix and other companies may continue to adopt a conservative approach. Tariff concerns persist, with President Trump threatening steep import taxes on major U.S. trading partners if agreements are not reached by August 1.
Recent inflation data showed a 2.7% rise in consumer prices in June, driven by increased costs of goods, which may slow the Federal Reserve’s plans to lower interest rates.
