Topline
Netflix had its best quarter ever, according to earnings results announced Thursday afternoon, setting the stakes for Netflix stock moving forward after it emerged as a perhaps surprising stock market safe haven during the recent slump.
Netflix co-CEO Ted Sarandos attends a Netflix premiere in February.
In its Q1 report released shortly after 4 p.m. EDT market close, Netflix reported its best-ever quarterly earnings per share and revenue numbers.
Netflix scored $6.61 EPS ($2.9 billion net income) and $10.54 billion last quarter, besting consensus analyst estimates calling for the entertainment titan to report $5.67 adjusted EPS ($2.5 billion net income) and $10.5 billion in sales, according to FactSet data.
The company said it expects $11 billion in sales and $7.03 EPS during the second quarter, topping top and bottom line forecasts of $10.9 billion and $6.25, respectively.
Shares of Netflix rose 1.2% to $973 on Thursday, surging another 3% in after-hours trading to nearly $1,000 per share.
Netflix has emerged from the 2025 stock losses stronger, gaining 4% since April 2 and 9% year-to-date. That came as the S&P 500 (down 6% since April 2, 10% year-to-date excluding dividends) and the Nasdaq (-7%, -15%) both pulled back as President Donald Trump’s trade war heightened recession concerns. Many analysts herald Netflix stock as a safe parking spot as economic slowdown fears swirl. “If a recession hits, we would expect Netflix subscribers to be sticky as Netflix is a stay-at-home cheap diversion, of the type that has held up well in past recessions,” Rosenblatt analyst Barton Crockett wrote in a Monday note to clients. “Amid recent market volatility, Netflix's strong subscription model with critical entertainment (which historically has performed well in a recession) has made the stock a defensive choice for investors,” Bank of America analysts led by Jessica Reif Ehrlich concurred in a Tuesday note.
Netflix has far outperformed other members of the “FAANG” group, smashing returns this year from the other high-growth technology names: Facebook parent Meta (down 14% year-to-date excluding dividends), Amazon (-21%), Apple (-21%) and Google parent Alphabet (-19%). Netflix has also outperformed Disney (-23% year-to-date) and Max parent Warner Bros. Discovery (-23%), though audio streamer Spotify’s 29% gain this year tops Netflix’s.
Fellow FAANG constituents Alphabet and Amazon will join Netflix in reporting Q1 earnings next week. Both West Coast titans will deliver results next Thursday.