Netflix Lifts Revenue Guidance While Raising Concern Margin Pressure from Higher Content Spend

Group 1 - The core viewpoint is that Netflix has raised its full-year revenue guidance while expressing concerns about declining operating margins due to increased content spending [2][3] - In Q2 2025, Netflix reported sales of $11.08 billion, reflecting a 15.9% year-over-year increase, which met analyst expectations [2] - The company raised its full-year revenue guidance to $45 billion at the midpoint, up from a previous forecast of $44 billion [2] Group 2 - Netflix anticipates lower operating margins in the second half of 2025 compared to the first half, primarily due to increased content amortization and sales and marketing costs [3] - The company is heavily investing in content, including major original productions and licensed content, which is supported by substantial marketing expenses [3] - As of September 09, 2025, Netflix's weekly performance dropped by 2.28%, but it has a six-month performance of 23.51% and a consensus upside potential of 17.95% [4]