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Global streaming giant Netflix has posted better-than-expected financial results for the second quarter of 2025, driven by robust international performance and favorable currency impacts. The company reported revenues of USD 11.1 billion and earnings per share (EPS) of USD 7.19, surpassing Wall Street forecasts and reinforcing its leadership in the entertainment streaming sector.

Netflix also revised its full-year revenue guidance upward to USD 45.2 billion, with an operating margin of 29.5%. Net income is expected to exceed USD 10 billion for the first time in the company’s history—signaling its increasing efficiency and growing financial strength.

Despite the strong financials, Netflix shares dipped slightly in after-hours trading, a move analysts attribute to the stock's near 90% rally over the past 12 months.

Josh Gilbert, Market Analyst at eToro, commented: “These results reinforce Netflix’s dominance in the streaming sector. The company is successfully combining international growth with innovation in advertising and technology, all while continuing to deliver premium content.”

A notable growth driver is the rapid expansion of Netflix’s ad-supported subscription tier, which now reaches over 94 million monthly active users. The company anticipates doubling its advertising revenue in 2025, turning this segment into a significant revenue stream.

In addition to advertising, artificial intelligence (AI) is playing a strategic role in Netflix’s evolution. The platform is leveraging AI to optimize production workflows and personalize content targeting, with the aim of supporting future margin expansion and viewer engagement.

“As Netflix continues to grow, it’s clear the company’s strategy is firing on all cylinders,” Gilbert added. “Its diversified revenue approach—combining advertising, live sports, and localized content—puts Netflix in a strong position to expand its global market share.”

Content remains Netflix’s core differentiator. Major titles like Stranger Things, Wednesday, and the newly released Squid Game season, which broke viewership records within its first three days, are expected to drive subscriber growth through the second half of the year.

While competition from major players like Disney, Apple, and Amazon remains fierce, Netflix's focus on innovation, global expansion, and strategic content investments continues to solidify its market leadership.

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