Netflix (NFLX) Tops Q2 Earnings Estimates

Core Insights - Netflix reported quarterly earnings of $7.19 per share, exceeding the Zacks Consensus Estimate of $7.07 per share, and up from $4.88 per share a year ago, representing an earnings surprise of +1.70% [1] - The company posted revenues of $11.08 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.06%, and up from $9.56 billion year-over-year [2] - Netflix shares have increased approximately 40.3% year-to-date, significantly outperforming the S&P 500's gain of 6.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $6.56 on revenues of $11.29 billion, and for the current fiscal year, it is $25.45 on revenues of $44.55 billion [7] - The estimate revisions trend for Netflix was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Broadcast Radio and Television industry, to which Netflix belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]