Netflix Earnings Top Forecasts Despite Economic Turmoil

AFP/APP

San Francisco: Netflix on Thursday reported quarterly earnings slightly exceeding analysts’ expectations, stating that it remains focused on factors within its control amid economic uncertainty driven by US President Donald Trump’s ongoing trade war.

The streaming giant declared it was “off to a good start in 2025,” posting a net profit of $2.9 billion on revenue of $10.5 billion in the first quarter of the year.

According to Netflix, revenue growth was driven by increased subscription and advertising earnings, as well as the timing of certain expenses.

Shares of the Silicon Valley-based company rose nearly three percent in after-market trading.

“The will-they-or-won’t-they tariff situation is disruptive to many industries and will make entertainment more expensive to produce,” said Emarketer senior analyst Ross Benes. “But Netflix is poised to withstand the strain better than most of its competitors, at least initially, due to its low reliance on ad revenues and its favorable cancellation rates compared to peers.”

Netflix is closely monitoring consumer sentiment and broader economic trends, co-chief executive Greg Peters told analysts during the earnings call.

“We remain focused on the things we can control, and improving the value of Netflix is the big one,” added co-chief executive Ted Sarandos. “Historically, in tougher economies, home entertainment value becomes especially important for households.”

Sarandos noted that while Netflix spends most of its content budget in the United States, it now produces original shows and films in around 50 countries.