LOS GATOS, California: A blockbuster quarter fueled by global hits like Squid Game has helped Netflix beat second-quarter earnings expectations and raise its revenue forecast for the year, though analysts say investor hopes were set even higher.

The company reported earnings per share of US$7.19, slightly ahead of the $7.08 estimate from analysts polled by LSEG. Revenue totaled $11.08 billion, just over forecasts of $11.07 billion. Net income came in at $3.1 billion, edging expectations of $3.06 billion.

Netflix also raised its full-year revenue guidance to between $44.8 billion and $45.2 billion, citing "healthy member growth," strong ad sales, and a weaker U.S. dollar. Previously, the company had forecast revenue of up to $44.5 billion.

The update followed the late-June release of the final season of Squid Game, the dystopian Korean series that became Netflix's most-watched non-English language title. The new season drew 122 million views in just days, helping boost Netflix's performance late in the quarter.

Still, the stock fell 1.8 percent in after-hours trading, with some analysts saying the company's updated guidance felt cautious. "The full-year outlook now feels quite conservative, which is problematic for a stock priced for perfection," said Investing.com's Thomas Monteiro. "At this stage, the company appears overly dependent on further price increases — at least through 2026 — to drive revenue."

The company's efforts to expand its advertising business continue, including through an ad-supported tier and recent forays into live programming like WWE wrestling. However, Netflix has said advertising will remain a secondary contributor to revenue growth in the near term.

Among the other shows released during the quarter were Sirens, The Four Seasons, and a third season of Ginny & Georgia. Netflix no longer reports quarterly subscriber numbers and has instead asked investors to focus on profit. It said member growth beat forecasts but came late in the quarter, limiting its impact on revenue.

Looking ahead, Netflix projected $11.5 billion in revenue and net income of nearly $3 billion for the next quarter — both slightly above Wall Street expectations.

Two major releases are on the horizon: a new season of Wednesday in August and the final episodes of Stranger Things in November and December. Both shows rank among Netflix's most valuable franchises globally.

In a post-earnings call, Chief Financial Officer Spencer Neumann was asked about the possibility of acquiring assets from other media firms. He reiterated Netflix's preference for organic growth: "We've historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook."