Netflix maintained its 2025 guidance. There’s a catch

Netflix Officials messed up on Thursday that everything is good with business due to economic disturbance. But its entire year outlook tells a little more fine story.

Netflix posted a big beat On the operating margin for the first quarter, according to the Strikut, a reporting of 31.7% compared to an average estimate of 28.5%. And it directed above analyzer estimates for the second quarter – 33.3% against an average estimate of 30%.

By its own phrase, Netflix was “forward” of its own guidance for the first quarter and “is trekking above the middle-point of our 2025 revenue guidance border.”

Nevertheless, Netflix refused to change any of its long -term estimates. This suggests that Netflix is ​​not so confident in its second half.

Netflix wrote to the shareholders in his quarterly note, “There has been no physical change in our overall business approach since our previous earnings report.”

The US Consumer spirit is at its second lowest level as President Donald Trump’s new tariff policies since 1952.

Co-CEO Greg Peters said during the company’s earnings conference that Netflix had “generally quite flexible” in the past, for the economic recession. Home entertainment provides a cheaper look of holidays than most other activities. The cost of a monthly Netflix membership with advertisement is $ 7.99.

But the question is how – or what – an economic recession will pinch the wallet of Americans and force the high churning between streaming membership.

Netflix stopped reporting quarterly customer numbers in this quarter, so the company looks at the recession of a customer later this year, beyond reporting its underlying revenue and profit.

The first-fourth of the $ 10.5 billion revenue was almost in line with analyst’s expectations, while the second-quarter guidance of $ 11 billion is slightly above.

Peters said, “Retention, it is stable and strong. We have not seen anything important in the plan mix or plan rate.” “Things generally look stable.”