Netflix Inventory Pops On Larger Income Outlook, $15B Buyback Enhance

Netflix (NFLX) reported fourth-quarter outcomes that surpassed analysts’ expectations and raised its 2025 income forecast, sending shares hovering after the bell Tuesday. 

The streaming large noticed income develop 16% to $10.25 billion, above the analyst consensus compiled by Seen Alpha. Earnings got here in at $1.87 billion, or $4.27 per share, up from $937.8 million, or $2.11 a share, a yr in the past and beat analysts’ expectations. 

Positive aspects Come as Netflix Provides New Subscribers

The expansion got here as Netflix mentioned it ended 2024 with 302 million memberships and achieved 19 million internet new additions within the fourth quarter. That is the final quarter Netflix will report membership and common income per member on a quarterly foundation, as beforehand introduced.

Netflix Lifts Its Income Outlook, Expands Buybacks

Wanting forward, Netflix mentioned it expects fiscal 2025 income of $43.5 billion to $44.5 billion, $500 million greater than its earlier estimate. Analysts had anticipated $43.65 billion, in keeping with Seen Alpha.

The streamer additionally mentioned it boosted its share repurchase program by $15 billion, bringing its complete authorization to $17.1 billion. Final yr, Netflix repurchased 9.9 million shares for $6.2 billion.

Subscription Costs Additionally Rise

Netflix is elevating its subscription costs within the U.S., Canada, Portugal, and Argentina as effectively, which the streaming large mentioned was already factored into its steering.

The streamer’s ad-supported plan will transfer to $7.99 from $6.99, the usual ad-free plan to $17.99 from $15.49, and the premium plan to $24.99 from $22.99, a Netflix spokesperson advised Investopedia.

Co-CEO Greg Peters known as the transfer a part of a “virtuous cycle” on the corporate’s earnings name. “We glance to repeatedly present extra worth to our members,” Peters mentioned, including “after we’ve carried out that, then we ask them to pay a bit extra.”

Netflix mentioned new ad-supported memberships represented 55% of all Netflix signups in international locations the place the plan was accessible, and the ad-supported tier grew not less than 30% quarter-over-quarter for the second-straight interval.

Shares of Netflix jumped over 14% in prolonged buying and selling Tuesday following the corporate’s earnings name. They have been up almost 80% over the previous yr as of Tuesday’s shut.

UPDATE—Jan. 21, 2025: This text has been up to date because it was first printed to incorporate further information, feedback and context.