Squid Game Finale Boosts Netflix Earnings, But Guidance Disappoints Investors

Netflix (NASDAQ:NFLX) surpassed Wall Street’s second-quarter earnings expectations, thanks in part to the highly anticipated final season of its global hit Squid Game. The Korean dystopian series, which remains the platform’s most popular non-English show, drew 122 million views following its late-June release.

The streaming giant reported diluted earnings per share of $7.19, beating the $7.08 estimate by LSEG analysts. Revenue for the quarter came in at $11.08 billion, slightly above the projected $11.07 billion. Net income hit $3.1 billion, narrowly topping forecasts.

Despite the beat, shares fell 1.8% in after-hours trading to $1,251.86, as some investors had hoped for a stronger full-year outlook. Netflix raised its 2025 revenue guidance to between $44.8 billion and $45.2 billion, citing healthy member growth, increased ad sales, and a weaker U.S. dollar. However, analysts like Investing.com’s Thomas Monteiro called the forecast “conservative,” noting the stock remains “priced for perfection.”

Netflix has expanded its offerings to include an ad-supported tier and live events like WWE, though advertising is not expected to be a major growth driver in 2025. The company stopped reporting quarterly subscriber numbers earlier this year, shifting focus to profitability. It did say member growth exceeded expectations but came too late in the quarter to significantly impact revenue.

Looking ahead, Netflix forecasts Q3 revenue of $11.5 billion and net income near $3 billion, ahead of analyst projections. Major upcoming releases include Wednesday in August and the final season of Stranger Things in Q4.

CFO Spencer Neumann said Netflix will remain selective about acquisitions, reaffirming its strategy of building rather than buying content. “We see a long runway for growth without changing that playbook,” he said.