Netflix’s Big First Quarter Earnings Report: What to Expect

Netflix is back in the spotlight as it prepares to report its first quarter earnings after the market closes on Thursday. And let’s be honest—there’s a lot riding on this. While many Big Tech companies are feeling the pressure of a shaky economy, trade tensions, and market volatility, Netflix is standing out in a big way.

A Bright Spot in a Shaky Market

So far this year, Netflix stock has been a rare winner. While tech giants like Apple, Amazon, and Google’s parent company Alphabet have seen their shares drop by 17% or more in 2025, Netflix has climbed 9%. For context, the S&P 500 is down about 9% over the same time.

Why is Netflix doing so well when others are struggling?

It comes down to one thing: stability.

Netflix’s subscription model makes it more resistant to economic downturns. Even during tough times, people still want to be entertained, and Netflix continues to deliver. That’s why many investors see it as a “defensive stock”—something relatively safe to hold when the market gets rough.

As Bank of America analyst Jessica Reif Ehrlich put it: “Netflix’s strong subscription model with critical entertainment...has made the stock a defensive choice for investors.”

What Wall Street Expects

Here’s what analysts think Netflix will report for Q1, according to Bloomberg:

1. Revenue: $10.50 billion (up from $9.37 billion a year ago)
   Netflix’s own guidance was $10.42 billion.

2. Earnings per Share (EPS): $5.68 (up from $5.28 a year ago)
   Netflix’s guidance was a bit lower at $5.58.

This will also be the first earnings report where Netflix won’t be sharing subscriber numbers—at least for now. At the end of 2024, the company had about 301.6 million global subscribers, but they’ve decided to hold off on regularly reporting this metric. Instead, they’re focusing on engagement and revenue growth.

They did mention that they’ll still provide subscriber data when they hit major milestones, so it’s not gone forever.

The Streaming King

Netflix has come a long way since mailing DVDs.

According to MoffettNathanson analyst Robert Fishman: “Netflix has won the streaming wars. Case closed.” It sounds bold, but here’s why he (and many others) believe it:

1. They have more content

2. More content means better engagement

3. Better engagement brings more subscribers

4. More subscribers mean pricing power

It’s a cycle that keeps feeding itself—and so far, it’s working.

Looking ahead, Netflix is chasing some ambitious goals. The company reportedly wants to double its revenue by 2030 and eventually reach a $1 trillion valuation. As of now, it’s sitting just above $400 billion in market value.

Momentum From a Huge 2024

Last year was a record-breaker for Netflix:

1. Revenue grew 16%

2. Operating margins jumped to 27%, which is 300 basis points above their early-year guidance

3. They added 41 million global subscribers, even more than the 36.6 million added during the COVID boom of 2020

One big factor behind those subscriber gains? Password-sharing crackdowns. The company tightened the rules, and that led to more paying users.

That said, analysts expect the gains from that strategy to slow down a bit. But Netflix isn’t too worried. They’re betting that their strong content lineup and ad-supported tier will help attract even more viewers in the months to come.

Ads, Price Hikes, and Content Galore

Netflix has been testing different strategies to boost both revenue and reach. One of those is the ad-supported plan, which starts at $7.99 per month. It’s one of the most affordable streaming options out there, and it’s helping bring in budget-conscious viewers.

They’ve also raised prices on several tiers, including the ad-supported one. The company explained that decision by simply saying: “Our content has never been better.”

And they’re not wrong.

In 2025, Netflix plans to bring back major fan-favorites like:

1. Stranger Things

2. Squid Game

3. Wednesday

These are global hits that draw in huge audiences and keep people coming back for more.

Beyond TV: Sports, Live Events, and More

Netflix is also expanding beyond traditional series and movies. Sports and live events are becoming a bigger part of the platform. For example:

1. The Jake Paul vs. Mike Tyson match brought in massive views

2. NFL Christmas Day games were a hit

3. WWE Raw recently made its debut on Netflix

There are even rumors floating around that Netflix might try to grab UFC broadcasting rights. If that happens, it could be a game-changer.

All of this is part of Netflix’s broader strategy to offer something for everyone—whether you're into dramas, documentaries, or knock-out punches in the ring.

What Analysts Think

Overall, Wall Street is feeling optimistic. According to Bloomberg:

1. 45 analysts rate the stock a Buy

2. 13 rate it a Hold

3. Only 2 rate it a Sell

The median price target? Around $1,085 a share. Some are even more bullish—like Bank of America’s Jessica Reif Ehrlich, who has a price target of $1,175.

She believes that if Netflix continues seeing strong subscriber growth and keeps hitting big financial targets, investors will feel even more confident about its long-term future.

Final Thoughts

Netflix is proving it’s not just surviving the current market—it’s thriving.

With a strong lineup of returning content, bold moves into live events and sports, and a smart pricing model, the company is hitting the right notes. Add in a loyal subscriber base and ambitious financial goals, and it's easy to see why Netflix stands out right now.

As we wait for the Q1 earnings results, one thing is clear: Netflix isn’t just a streaming company anymore. It’s a full-blown entertainment empire—and it’s only getting bigger.

Netflix has been testing different strategies to boost both revenue and reach. One of those is the ad-supported plan, which starts at $7.99 per month. It’s one of the most affordable streaming options out there, and it’s helping bring in budget-conscious viewers.