Netflix surpasses expectations for the first quarter, indicating that Trump’s tariffs have not impacted it so far

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.

“Netflix remains a standout in an otherwise volatile tech landscape,” said Andrew Rocco, a who tracks the stock market for Zacks Investment Research.
The company’s shares rose nearly 3% in extended trading after its report came out.

The trade war could still hurt Netflix if it triggers a recession or fuels inflationary pressures as many economists fear. In those scenarios, more consumers may curtail their discretionary spending on entertainment.

The economic volatility could also result in a slowdown in advertising to the detriment of Netflix’s efforts to sell more commercials for a low-priced version of its streaming service that accounted for most of its last year’s subscriber growth.

“We’re paying close attention clearly to the consumer sentiment and where the broader economy is moving,” Netflix co-CEO Greg Peters said during a Thursday conference call. “But based on what we are seeing by actually operating the business right now, there’s nothing really significant to note.”

Peters also said Netflix’s low-cost option, currently priced at $8 per month in the U.S., should help insulate its video streaming service if households start tightening their belts.

In a sign of its confidence, Netflix reaffirmed its previous prediction for annual revenue of roughly $44 billion, up 13% from 2024.

“Historically in tougher economies, home entertainment value is really important to consumer households,” Netflix co-CEO Ted Sarandos noted during the conference call.