Streaming giant Netflix has outperformed Wall Street expectations for the second quarter of 2025, thanks in large part to the explosive success of the final season of its global hit series Squid Game.
The Korean dystopian thriller continues to be a powerhouse performer, delivering 122 million views in just days after its June release, and reaffirming its status as the most-watched non-English language show in Netflix history.
The company reported diluted earnings per share (EPS) of $7.19, topping analysts’ consensus estimate of $7.08, according to LSEG data. Net income for the quarter came in at $3.1 billion, slightly exceeding expectations of $3.06 billion, while revenue hit $11.08 billion, also nudging past the forecast of $11.07 billion.
Buoyed by the final chapter of Squid Game and a string of other popular releases including Sirens, The Four Seasons, and Ginny & Georgia Season 3, Netflix raised its full-year revenue guidance for 2025 to a range of $44.8 billion to $45.2 billion. This upward revision comes on the back of “healthy member growth, increased ad sales,” and the weakening U.S. dollar, according to the company.
Netflix also revealed that member growth exceeded forecasts, though most of the gains occurred late in the quarter, minimizing their immediate impact on Q2 revenue. Despite this, the company reiterated its strategic shift away from reporting quarterly subscriber numbers, encouraging investors to prioritize profitability over raw subscription figures.
In its outlook for Q3, Netflix projected revenue of $11.5 billion and net income close to $3 billion, both slightly above market forecasts. While advertising is gaining momentum—especially with the addition of live content like WWE events—Netflix maintained that advertising will not be a primary revenue driver in 2025.
Looking ahead, the platform is banking on continued momentum with the upcoming releases of two of its most successful franchises: “Wednesday” is set to return in August, while the eagerly awaited final episodes of “Stranger Things” are scheduled for release in November and December.
With a strategic focus on profitability, global content expansion, and selective integration of advertising and live events, Netflix is positioning itself to maintain its streaming dominance amid fierce competition, even as the industry undergoes significant transformation.
WHAT YOU SHOULD KNOW
Netflix exceeded Wall Street expectations in Q2 2025, driven largely by the record-breaking final season of Squid Game, which helped boost earnings, revenue, and full-year guidance. The company is shifting focus from subscriber counts to profitability, while strengthening its content lineup and ad-supported strategy to sustain long-term growth.
