Netflix to Report Q2 Earnings After Market Close

Netflix (NFLX, Financials) is set to release its second-quarter earnings after the bell Thursday, with investors watching closely for signs that recent price hikes and its advertising-supported tier are driving results as expected.

LSEG said that Wall Street expects earnings per share of $7.08 and sales of $11.07 billion. This would be around a 45% rise in profit and a 15% increase in revenue compared to the same time last year.

Netflix doesn't announce membership numbers every three months anymore, but analysts say that the company's pricing strategy and ad tier performance will be very important, especially because inflation is making things hard for consumers.

The streaming behemoth had a great first quarter, and officials said that a price hike in January helped improve top-line growth. The outcomes for the second quarter are likely to be similar.

Alicia Reese, an analyst at Wedbush, said earlier this month that she thinks Netflix is "well-positioned to accelerate ad tier revenue contribution" in the next few years. She said that better live events, better ad targeting, a better content strategy, and more global collaborations were all important long-term growth drivers.

Reese said that pricing will be the main driver of growth in 2025, following Netflix's strong subscriber increase in 2024. Advertising will be the next step in development in 2026.

Netflix's stock has gone up more than 40% this year and more than 90% in the last 12 months.