Netflix Inc. has exceeded expectations in its fourth-quarter 2025 earnings, delivering stronger-than-forecast earnings and revenue alongside accelerating growth in its advertising business. The company has reported earnings per share (EPS) of $0.56, edging past analysts’ expectations of $0.55, while revenue has reached $12.05 billion, topping the projected $11.97 billion.
Across 2025, Netflix has recorded a 16% year-on-year increase in revenue and a 30% rise in operating profit, signalling improved efficiency and margin expansion. Advertising has emerged as a key growth lever, with ad sales having grown 2.5 times over the year as the company continues to scale its ad-supported tier.
Netflix has also continued to broaden its business model, having expanded into live events and gaming as part of its strategy to diversify content offerings and deepen audience engagement. These initiatives have positioned the company to compete more aggressively across streaming, entertainment, and interactive media.
Financially, Netflix has delivered an earnings surprise of 1.82%, exceeding EPS forecasts, while revenue has surpassed expectations by 0.67%. This performance has remained consistent with Netflix’s recent pattern of meeting or outperforming market projections.
Following the earnings release, Netflix’s stock has risen 1.52% in after-hours trading to $89.34, reflecting improved investor confidence in the company’s revenue growth trajectory and monetisation strategy. The stock has continued to trade within its 52-week range, indicating relative stability amid broader market volatility.
Looking ahead, Netflix has projected revenue of $51 billion for 2026, implying a 14% year-on-year increase, and has targeted an operating margin of 31.5%. The company has also indicated that advertising revenue is expected to double to $3 billion in 2026, alongside continued investments in content production, live programming, and gaming expansion.
