Netflix Second Quarter Earnings Highlights: Live Updates

Netflix kicked off the Big Tech second quarter earnings with a bang, beating both top and bottom line estimates and raising its full-year revenue guidance. Their earnings per share grew by 47% compared to the same quarter last year, hitting $7.19 on revenue of $11.08 billion. Netflix also forecasted current quarter revenue to be $11.53 billion, higher than the $11.28 billion expected by analysts.

Before the market opened, investors received updates from other notable companies such as PepsiCo, GE Aerospace, and Taiwan Semiconductor Manufacturing, the supplier for Nvidia, which reported a record quarterly profit due to strong AI demand. The earnings season started unofficially with big banks like JPMorgan, Goldman Sachs, Bank of America, and others exceeding expectations.

Analysts expect S&P 500 companies to report a 5% increase in earnings per share for the second quarter, which is the slowest growth rate since the fourth quarter of 2023. So far, with 4% of the index reporting, earnings growth for the second quarter is tracking to 4.8%. Companies like 3M, American Express, and Charles Schwab will also be reporting earnings this week.

After Netflix delivered what Bloomberg Intelligence senior media analyst Geetha Ranganathan described as a “solid” report, the stock took a slight hit post-earnings. The operating margin was good, but perhaps not up to par with investor expectations. However, Netflix’s continued positive outlook for the year left analysts satisfied.

Abbott’s second quarter profits beat expectations, but their third quarter forecast fell short. Sales of Abbott’s continuous glucose monitors saw a significant jump, but its future outlook led to a 4% drop in premarket trading. Taiwan Semiconductor Manufacturing Company (TSM) reported record profits, citing increased artificial intelligence demand, and raised its sales outlook for the upcoming quarters.GE Aerospace and PepsiCo also announced positive updates as the quarter progresses.

United Airlines posted better-than-expected earnings, with adjusted earnings per share higher than anticipated, leading to a positive outlook for the rest of the year. Investors eagerly await more earnings reports, looking for insights into the health of the US economy and any potential impacts from tariffs.