Netflix Posts Record Profit, Resilient Amid Economic Uncertainty and Tariffs

Netflix Inc. reported a record profit to begin the year, allaying concerns about a slowdown or that the streaming leader would be harmed by rising economic uncertainty.

The company said Thursday that its first-quarter earnings increased 25% to $6.61 per share, easily exceeding analysts' expectations. Sales increased to $10.5 billion, in line with expectations. The results were boosted by a recent price increase and a strong slate of programming around the world, including the hit UK series Adolescence.

During a period of high economic uncertainty and challenges for traditional film and television industries, investors have come to regard Netflix as a safe bet. With a global audience of over 700 million viewers, the company stated that President Donald Trump's tariffs and the subsequent market volatility have had no impact on its business.

"We're paying close attention to consumer sentiment and where the broader economy is going," co-CEO Greg Peters said during a conference call with analysts. "Based on what we're seeing, there is nothing significant to note."

According to Peters, entertainment has proven resilient during previous recessions, and Netflix has introduced lower-cost subscription plans to provide consumers with an alternative if they want to save money.

Thursday's report was the first time Netflix reported financial results without disclosing how many customers it gained or lost — the primary metric investors previously used to assess the company's performance. Management is encouraging investors to evaluate its success or failure using more traditional financial metrics.

The company increased operating income by 27% to $3.3 billion in the first quarter, exceeding expectations of $3 billion. Its operating margin of 31.7% was more than three percentage points higher than its own estimate.

Netflix shares rose as much as 5.2 percent to $1,024 in extended trading after the results were announced. The stock has been a bright spot in an otherwise troubled year for entertainment stocks, rising 9.2 percent through the close of regular trading Thursday in New York.

Netflix used to burn through cash to fund its expanding slate of shows, but now the company generates billions of dollars in profit and free cash flow. The company forecasted strong results in the current quarter, with sales growing 15% to $11 billion and earnings rising 44% to $7.03 per share, both exceeding Wall Street expectations.

The gains come after the company's best quarter ever. Netflix added 18.9 million customers by the end of 2024. Most analysts anticipated that the company's growth would slow in 2025, particularly after management raised prices in the United States, its largest market.