Netflix shares advanced in after-hours trading on Tuesday after the company reported quarterly earnings and subscriber growth that surpassed market forecasts.
The streaming platform posted earnings per share of $4.73 for the quarter, beating the $4.52 consensus estimate compiled by Refinitiv. Revenue rose 14.8% year-over-year to $9.37 billion, also exceeding expectations.
Netflix added 8.95 million paid subscribers during the period, outpacing the 8.5 million forecast. The company attributed the growth to strong performance in its core streaming business, including international markets, and continued expansion of its ad-supported tier.
Shares of Netflix were up more than 5% in extended trading following the results, reversing earlier losses in the regular session. The stock has gained roughly 25% over the past three months, outperforming the broader S&P 500 index.
Analysts at major banks maintained mixed views on the stock. JPMorgan reiterated an Overweight rating with a $700 price target, citing sustained subscriber momentum and pricing power. Meanwhile, Morgan Stanley maintained an Equal-Weight rating, citing valuation concerns despite the strong results.
Netflix’s guidance for the current quarter projected revenue between $9.45 billion and $9.65 billion, slightly below the $9.71 billion consensus. The company also forecast slower subscriber growth in the near term, reflecting seasonality and market saturation in key regions.
The earnings report follows Netflix’s recent introduction of a new premium tier with higher pricing and additional features, aimed at capturing higher-value subscribers. The company continues to invest in original content and international expansion as part of its long-term growth strategy.
Investors will be watching closely for updates on advertising revenue growth and the performance of its gaming segment, which remains a smaller but growing contributor to overall results.
