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PRESSR: Netflix beats Q2 expectations and revises annual guidance higher.
Dubai, United Arab Emirates – Netflix has cemented its position as a global leader in the streaming entertainment sector, announcing strong second-quarter results that exceeded expectations across all key metrics .
The company reported revenue of $11.1 billion and earnings per share (EPS) of $7.19, supported by strong performance in international markets and a weaker US dollar. The company also revised its full-year outlook upward, with sales expected to reach $45.2 billion and operating margins of 29.5%, highlighting the company's expansion and ability to deliver strong margins. Net profit is on track to exceed $10 billion for the first time in the company's history .
Despite these strong results, Netflix shares fell slightly in after-hours trading, likely due to the stock's nearly 90% rise over the past 12 months .
According to Josh Gilbert, market analyst at eToro, " These results reflect Netflix's continued dominance in the streaming sector. The company combines international growth with innovation in advertising and technology, while continuing to deliver high-quality entertainment content ."
One of the most significant points that has caught the attention of investors is the rapid growth of Netflix's ad-supported segment, which now has more than 94 million monthly active users. The company expects to nearly double its advertising revenue by 2025, representing a powerful new growth engine. Netflix is also relying on artificial intelligence to streamline production processes and improve viewer targeting, steps that should boost profit margins in the long term .
"Netflix's strategy is clearly working," added Josh Gilbert, market analyst at eToro. "The company's focus on diversifying its revenue streams—through advertising, live sports, and local content—gives it a strong competitive advantage to capture a larger share of the global market ."
As always, premium content remains at the core of Netflix's strategy. The upcoming lineup includes new seasons of popular global hits like "Stranger Things" and "Wednesday." Its flagship series, "Squid Game," also set record viewing figures in its first three days of release, boosting subscriber growth and engagement during the second half of the year .
Despite ongoing competition from major players like Disney, Apple, and Amazon, Netflix continues to lead the industry. Its strategic focus on innovation and global expansion ensures its unique ability to achieve sustainable, long-term growth .
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