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Netflix’s first quarter builds on recent momentum as trade war drags down other tech companies

Netflix’s first quarter builds on recent momentum as trade war drags down other tech companies

The Hindu
Friday, April 18, 2025 4:21 AM GMT

Netflix fared better than analysts anticipated during the first three months of the year.

Netflix fared better than analysts anticipated during the first three months of the year, signaling the world’s largest video streaming service is still thriving as President Donald Trump’s policies cast a pall on the economy.

The numbers released Thursday indicated Netflix is still building on the momentum that enabled it to add 41 million worldwide subscribers last year — the biggest annual gain in the company’s 27-year history.

But it’s unclear precisely how many more subscribers Netflix picked up during the January-March period because this report marks the first time that that the Los Gatos, California, company hasn’t provided a quarterly update on its total subscribers.

Netflix announced last year it would no longer report subscriber numbers beginning with this quarter as the company seeks to shift investors' focus to its profits after topping 300 million global subscribers in December. As part of that emphasis Netflix is working to sell more advertising to supplement subscription dollars.

Netflix’s sharper focus on its finances paid off in this year’s first quarter with earnings of $2.9 billion, or $6.61 per share, a 24% increase from from the same time last year. Revenue climbed 13% from the same time last year to $10.54 billion. Both numbers exceeded forecasts compiled by FactSet Research. Without providing details, Netflix cited ongoing subscriber growth as the main reason for its strong start this year.

The robust growth came against a background of economic chaos and Trump’s fluctuating trade war. The tech industry has been hit particularly hard by the sweeping tariffs that Trump unveiled April 2 because so many bellwether companies rely on international supply chains that have been provided some relief by temporary freezes and exemptions from the fees.

But Netflix’s global streaming service hasn’t been touched by Trump’s tariffs yet, making the company a notable exception that has enabled its stock price to increase 9% so far this year, while the market values of most other major tech companies have plummeted.

Read full story on The Hindu
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