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.
Key Facts
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 Stock Emerges As A Potential Recession Winner
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.
Surprising Fact
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.
What To Watch For
Fellow FAANG constituents Alphabet and Amazon will join Netflix in reporting Q1 earnings next week. Both West Coast titans will deliver results next Thursday.
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