Netflix just posted the best quarter in its history—both in revenue and profit—sending shares surging and reinforcing its new role as a defensive stronghold in a volatile market.
Key Takeaways
Netflix’s Q1 earnings, released after Thursday’s closing bell, blew past Wall Street’s forecasts. The streaming giant posted earnings of $6.61 per share, translating to a net income of $2.9 billion, on revenue of $10.54 billion. Analysts were expecting $5.67 EPS and $10.5 billion in revenue, according to FactSet.
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Looking ahead, Netflix projects $11 billion in revenue and $7.03 EPS for Q2—again, ahead of consensus estimates of $10.9 billion and $6.25, respectively.
The market reacted fast. Netflix stock ended the day up 1.2% at $973 and jumped another 3% in after-hours trading, approaching the $1,000 milestone.
A Recession-Proof Play?
While most tech names are reeling from recent market turbulence, Netflix is quietly thriving. Since April 2, the stock is up 4%, with a 9% gain on the year, while the S&P 500 and Nasdaq have lost 6% and 7%, respectively, amid renewed trade tensions and recession fears under President Trump’s second term.
Analysts now see Netflix as a classic “recession stock”—a cheap, stay-at-home entertainment option that tends to hold up when consumers cut back elsewhere. “If a downturn hits, Netflix is likely to retain its subscriber base,” noted Rosenblatt analyst Barton Crockett. Bank of America echoed the sentiment, calling Netflix “a defensive pick in times of uncertainty” thanks to its subscription-driven model and cultural relevance.
Beating The FAANG Pack
Netflix’s year-to-date performance has not only outpaced the broader market but also crushed its tech peers. Meta is down 14%, Amazon 21%, Apple 21%, and Alphabet 19%. Even Disney and Warner Bros. Discovery have fallen 23% each. Only Spotify, with a 29% surge, has outshone Netflix so far in 2025.
What’s Next
All eyes now turn to Alphabet and Amazon, which are set to release their Q1 earnings next Thursday. After Netflix’s blockbuster quarter, expectations for the rest of the FAANG gang just got higher.
