Netflix (NFLX, Financial) lifts full‑year revenue guidance to $45.2 billion after a stronger‑than‑expected second quarter and successful global rollout of its Ad Suite.
In Q2, management raised the 2025 revenue range to $44.8 billion–$45.2 billion, up about $1 billion at the midpoint versus the prior $43.5 billion–$44.5 billion guide.
Reported operating margin now targets 30%, a full point above last year's 29%, with FX neutral margin also up 50 basis points. Co‑CEO Gregory Peters said retention “remains stable and industry‑leading,” while CFO Spencer Neumann noted that healthy member growth and ad strength beyond FX tailwinds drove the tighter range.
Netflix Ad Suite is live worldwide, and early results align with expectations, Peters added. Ad revenue is on pace to roughly double year‑over‑year as improved ad tech and advertiser demand gain momentum.
Co‑CEO Ted Sarandos highlighted a steady drumbeat of returning hits like Squid Game, Wednesday and Stranger Things alongside a robust slate of upcoming movies, series and games to keep engagement high.
