Netflix Set to Report Q2 Earnings: Buy, Sell or Hold NFLX Stock?

Netflix NFLX is slated to report second-quarter 2025 results on July 17. For the second quarter of 2025, NFLX forecasts revenues to increase 15.4% (+17% F/X neutral) to $11.035 billion, as the company foresees the full quarter benefit from recent price changes and continued growth in membership and advertising revenues. The company expects UCAN revenue growth to reaccelerate in the second quarter. The company anticipates total revenues to be $11.035 billion, suggesting growth of 15% year over year (+17% F/X neutral). The consensus mark for revenues is pinned at $11.05 billion, above the company’s expectations, indicating 15.63% year-over-year growth.NFLX has projected earnings of $7.03 per share. The Zacks Consensus Estimate for the same is pegged at $7.06 per share, currently above the company’s expectations. The estimate has inched up 0.1% over the past 30 days. Find the latest earnings estimates and surprises on Zacks Earnings Calendar.NFLX Estimate MovementImage Source: Zacks Investment ResearchNFLX Earnings Surprise HistoryIn the last reported quarter, the company delivered an earnings surprise of 16.17%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.94%.Netflix, Inc. Price and EPS Surprise Netflix, Inc. price-eps-surprise | Netflix, Inc. QuoteEarnings Whispers for NFLXOur proven model predicts an earnings beat for Netflix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.NFLX has an Earnings ESP of +1.68% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Factors Shaping Upcoming Results of NetflixNetflix appears well-positioned to deliver robust second-quarter 2025 results, building on the impressive momentum established in the first quarter where the streaming giant exceeded expectations with 13% revenue growth and 27% operating income expansion. The company's strong content slate and strategic platform enhancements throughout the second quarter is likely to have contributed to continued subscriber growth and engagement gains.The quarter benefited from a compelling mix of high-profile content releases that drove significant viewer interest. Netflix's film lineup included major productions featuring A-list talent, with Nonnas starring Vince Vaughn, Tyler Perry's drama Straw featuring Taraji P. Henson, and the action thriller Havoc starring Tom Hardy and Forest Whitaker. These premium offerings are likely to have attracted new subscribers while retaining existing ones during the competitive summer viewing season.More significantly, Netflix released the highly anticipated third and final season of Squid Game on June 27, which has historically been their most popular series globally. This cultural phenomenon is expected to have generated substantial subscriber additions and engagement spikes, particularly in international markets. The quarter also saw the return of beloved franchises, including new seasons of Black Mirror and Ginny & Georgia, along with fresh content like The Four Seasons starring comedy powerhouses Tina Fey and Steve Carell.Netflix's advertising business momentum continued accelerating through the second quarter, with the company successfully expanding its proprietary Netflix Ads Suite platform across EMEA markets and achieving full rollout across all 12 ad-supported countries by June. This expansion is likely to have contributed meaningful incremental revenue growth, supporting management's guidance for roughly doubling advertising revenues in 2025.The company's strategic investments in platform enhancement are noteworthy. Netflix introduced improved user experience features, including AI-powered search capabilities, enhanced recommendation systems, and a redesigned homepage, which are expected to have boosted engagement metrics and reduced churn rates. These technological improvements position Netflix advantageously against competitors while improving monetization efficiency.Management's confidence remained evident through its $1 billion commitment to transform Fort Monmouth into a premier East Coast production hub, signaling long-term growth conviction. Combined with the company's expanding global content pipeline and successful pricing strategies, Netflix appears to have multiple growth drivers firing simultaneously.Despite growing competition from the likes of Apple AAPL, Amazon AMZN and Disney DIS, a compelling second-quarter content slate anchored by Squid Game's finale, accelerating advertising platform rollout, and continued platform innovations makes Netflix poised to meet or exceed its second-quarter guidance of 33% operating margins. Investors should consider positioning ahead of what appears to be another quarter of solid execution and growth acceleration.Top-Line Growth Estimates for Q2The consensus mark for second-quarter 2025 Asia-Pacific revenues is pegged at $1.31 billion, indicating 25.1% growth from the figure reported in the year-ago quarter.The Zacks Consensus Estimate for Latin America revenues is pegged at $1.36 billion, suggesting a rise of 13% from the figure reported in the previous quarter.Moreover, the consensus mark for EMEA revenues is pegged at $3.46 billion, suggesting an increase of 15.3% from the figure reported in the year-ago quarter.The Zacks Consensus Estimate for the United States and Canada revenues is pegged at $4.91 billion, indicating a 14.4% rise from the figure reported in the year-ago quarter.NFLX Price Performance & Stock ValuationShares of Netflix have gained 41.1% in the year-to-date period against the Zacks Consumer Discretionary sector, Amazon and Disney’s growth of 10.2%, 2.5% and 7.7%, respectively. Apple shares have declined 15.8% in the same time frame.Netflix Outperforms Sector, PeersImage Source: Zacks Investment ResearchNow, let’s look at the value Netflix offers investors at current levels. Currently, NFLX is trading at 44.38X forward 12-month earnings, above its five-year median of 33.79X. Meanwhile, the Zacks Broadcast Radio and Television industry’s forward earnings multiple sits at 31.1X. The company’s valuation looks somewhat stretched compared with its range and the industry average.Price-to-Earnings (Forward 12 Months)Image Source: Zacks Investment ResearchInvestment Considerations: Balancing Risk and RewardNetflix presents a compelling investment opportunity ahead of second-quarter 2025 results, building on the exceptional first-quarter performance that delivered 13% revenue growth and 27% operating income expansion. Despite trading at a premium and facing competition, Netflix's differentiated content strategy continues driving subscriber growth, highlighted by the highly anticipated Squid Game finale and star-studded releases featuring Tom Hardy, Vince Vaughn, and Tina Fey. The company's advertising business momentum accelerated through the successful Netflix Ads Suite rollout across all 12 markets, supporting management's guidance for doubling ad revenues in 2025. Combined with AI-powered platform enhancements, global content investments, and strong pricing power, Netflix's multiple growth drivers position the stock for continued outperformance in an increasingly competitive streaming landscape.ConclusionNetflix's strong first-quarter foundation, compelling second-quarter content slate, accelerating advertising platform expansion, and innovative user experience enhancements position the company for another quarter of exceptional performance. With multiple growth drivers firing simultaneously and management's confident outlook, investors should buy Netflix ahead of second-quarter 2025 results to capitalize on the streaming leader's sustained strong competitive momentum.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks