ar
As Q2 earnings season starts, GE Aerospace (NYSE: GE) and Netflix (NASDAQ: NFLX) are set to report their Q2 earnings on July 17th with GE reporting before the opening bell while NFLX reports after the closing bell.
Both companies are expected to show promising numbers with both showing strong performance in previous quarters. GE Aerospace is showing robust demand in its aerospace segments, while Netflix is capitalizing on its ad-supported segment expansion and content diversification.
GE Aerospace Stock Hits 52-Week High
Wall Street Estimates
- Earnings Per Share: $1.4 per share, an estimated increase of 19.2% from Q2 2024
- Revenue: $9.56 billion, an estimated increase of 16% from Q2 2024
Strong Q1 Performance Promises Higher Q2 Expectations, Growth Drivers
GE Aerospace so far had an incredible year, with the stock rising 55% YTD, reaching a 52-week high at $262 on July 14. The company’s Q1 results indicated a 12% increase in orders, an 11% rise in revenue to $9.9 billion and 38% profit increase, with EPS and revenue beating estimates. ⁽¹⁾
Commercial Engines and Services
In Q1, the commercial engines and services (CES) segment orders rose by 31% YoY, with revenue reaching 17% and operating profit at 35%. Commercial backlog reached $140 billion, boosted by major orders globally.
This backlog provides a strong foundation for future growth, and analysts expect CES to continue driving revenue in Q2. ⁽²⁾
Defense Segment
The defense segment was also a winner in Q1, with revenue surging 5% and profit rising 16%. GE Aerospace also secured a defense contract with the United States Air Force for F110 engines, which amounted up to $5 billion.
The contract secured has shown the continuation of strong demand for engines for the military. The defense segment aligns with the CES segment’s momentum, which could position GE Aerospace for a solid performance in Q2. ⁽³⁾
Risks
GE has been dealing with high costs and expenses related to certain projects and restructuring activities, which could impact profitability.
The company faces sustained pressure from supply-chain issues, high tariffs and labor shortages. Also, foreign exchange headwinds might be worrying for the company.
Market Sentiment and Management Guidance
Many analysts are likely to be optimistic about Q2, as GE Aerospace has stayed consistent in its earnings performance, beating estimates for 4 consecutive quarters.
Management has stated their full-year guidance, forecasting an estimate of EPS between $5.10–$5.45 and double-digit revenue growth (around 15%), which could boost investor confidence despite supply chain issues and tariff risks. ⁽⁴⁾
Netflix Streaming Toward Growth
Wall Street Estimates
- Earnings Per Share (EPS): $7 per share, an estimated increase of 43% from Q2 2024
- Revenue: $11.048 billion, an estimated increase of 15.6% from Q2 2024
Q1 Earnings Fuels Q2 Optimism
Netflix stock has shown solid growth, with the stock rising more than 30% in three months. In Q1, the streaming giant reported revenue of $10.54 billion, up 12.5%, while EPS came in at $6.61 per share, up 25% YoY. ⁽⁵⁾
The strong performance was due to Netflix’s strong financial performance, as growth was driven by its subscription segment. The company has also indicated strong momentum in its ad-supported tier, signaling more expansion.
Despite heightened competition in the streaming industry, Netflix remains a leader.
Ad-Supported Segment
Netflix’s ad-supported segment was introduced in 2022, which has played a major role in its revenue growth. The segment gained 94 million monthly active users in early 2025, up from 40 million last year. Netflix aims to double its ad revenue this year and plans to reach the company’s goal of $8 billion in free cash flow. ⁽⁶⁾
Live Sports and Content Diversification
Netflix’s commitment to broadcasting live sports marks a shift from its traditional model. It is already gaining traction with new audiences and boosting subscriber retention. Live sports could reach an estimate of $25-35 million in ad revenue, potentially boosting growth. ⁽⁷⁾
Market Sentiment and Management Guidance
Analysts remain mixed on sentiment due to valuation concerns and macroeconomic factors. JP Morgan stated that Q2 is a tricky quarter as summer months are seasonally slower. ⁽⁸⁾
Management forecasts an improvement in operating margin from last year, while rising revenue could help Netflix deliver stronger results. Markets will also be waiting for commentary on the current results and more on their financial outlook.
