Rising economic uncertainty amid a global trade war did little to dampen Netflix’s financial results in the first quarter.
The Los Gatos-based streaming giant said its first quarter revenue grew 13% to $10.5 billion, fueled by membership growth and higher prices.
Net income jumped 24% to $2.89 billion in the quarter, well ahead of the $2.48 billion that analysts had forecast, according to FactSet.
The robust growth provided further evidence of Netflix’s dominance in the streaming market during an uncertain economy.
On Thursday, Netflix executives projected confidence about the company’s ability to weather tariff-fueled economic concerns, noting that its low-cost ad plan gives consumers options, that its engagement is still strong and that it produces content and has viewers throughout the world.
“We’re paying close attention, clearly, to the consumer sentiment and where the broader economy is moving, but based on what we are seeing by actually operating the business right now, there’s nothing really significant to note,” Netflix co-Chief Executive Greg Peters said during an earnings video interview. “Stepping back, we also take some comfort in the fact that entertainment, historically, has been pretty resilient in tougher economic times.”
Analysts, too, felt that Netflix’s market position could give them more of a cushion.
“In times when consumers may be scrutinizing their spending on streaming services, expert sentiment remains consistent: Netflix will continue to be the default platform and the last to be cut by the vast majority of users,” said John Conca, an analyst at investment research firm Third Bridge.
Netflix stock rose 1% on Thursday, closing at $973.03 a share.
Earlier this year, Netflix raised prices on certain subscription plans in the U.S., including for its lower cost ad-supported plan, which has been growing.
During the first quarter, Netflix became home to “WWE Raw,” which analysts said helped boost the streamer’s advertising and drew significant viewership.
Some analysts said they believe Netflix will weather any pullback in the advertising market caused by global trade disputes.
Netflix launched its cheaper ad-supported tier in 2022 and it is still a small, but growing, part of its business.
“Because Netflix relies on advertising less than most of its competitors do, in some ways it will be less exposed to tariffs that constrict upfront commitments,” said Ross Benes, senior analyst at research firm EMarketer. “I don’t think the macro economic problems the world is facing are going to hit them.”
Programs that Netflix launched in the first quarter included limited series drama “Adolescence,” about a 13-year-old boy suspected of murdering his classmate. The series has drawn 124.2 million views so far and is ranked third in Netflix’s most popular English language shows of all time, surpassing the first season of Regency romance series “Bridgerton.” The Jamie Foxx and Cameron Diaz-led spy comedy “Back in Action” was also a hit for the streaming service, garnering 146 million views and making it Netflix’s 6th most popular English language film ever.
Other shows that launched in the first quarter included the Shondaland mystery series “The Residence,” reality TV program “Million Dollar Secret,” Kate Hudson comedy series “Running Point” and romance movie “The Life List.”
“We’re executing on our 2025 priorities: improving our series and film offering and growing our ads business; further developing newer initiatives like live programming and games; and sustaining healthy revenue and profit growth,” Netflix said in a letter to shareholders on Thursday.
Last year, Netflix said it had more than 301 million subscribers.
Company executives also addressed a recent report in the Wall Street Journal that Netflix had internal financial goals of reaching a $1 trillion market capitalization and doubling its revenue by 2030. Netflix co-Chief Executive Ted Sarandos acknowledged the report, saying that on “rare and very disappointing occasions,” the company’s “confidential and internal discussions can leak into the press.”
“We often have internal meetings and we talk about long term aspirations, but it’s important to note that this is not the same as forecast,” he said during an investor presentation. “Our operating plans is the same as our external forecasting guidance. We don’t have a five year forecast or five year guidance, but you can assume that we’re long-range thinking.”
