You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated. The "Magnificent Seven" soared through 2023 and 2024, but the elite group of tech stocks has gotten crushed this year as weakening consumer sentiment and President Trump's trade war have sparked fears of a recession. However, another market darling is standing tall. While every member of the Magnificent Seven is down by double digits this year, Netflix (NASDAQ: NFLX) is up 9% year to date, outperforming those tech giants and the S&P 500 by a substantial margin. The streaming leader pleased investors once again with its first-quarter earnings report as the stock rose after hours on April 17 following the news. It's smooth sailing for Netflix Netflix stopped reporting quarterly subscriber figures in the first quarter, but its overall numbers were strong on both the top and bottom lines. Revenue rose 12.5% year over year to $10.5 billion, meeting analyst estimates, though the most impressive part of the report came further down the income statement. Netflix's operating margin hit a new record of 31.7% as operating income jumped 27% to $3.3 billion. That drove earnings per share up from $5.28 to $6.61, easily outperforming the analyst consensus of $5.66. Netflix beat its own guidance as both subscription and ad revenue were better than expected, and revenue growth was solid in all four of its regions with a particularly strong showing in international markets where they grew 16% or more on a currency-adjusted basis. The company continues to deliver a solid content slate, executing on its strategy of delivering a wide range of genres that can please audiences around the world. However, the most impressive part of the company's report was its expectations for the rest of the year, even as the trade war has clouded the outlook for so many companies. What trade war? Netflix made it clear in its shareholder letter and on its earnings call that it is seeing no headwinds from the broader economic uncertainty. It also maintained its guidance for the full year and offered a strong outlook for the second quarter. For the current quarter, the company expects revenue to increase 15% to $11.0 billion, while its operating margin climbs to 33.3%, which would be another record for the company. The goal Netflix set a few years ago of scaling up the business and expanding its operating margin by three percentage points each year now seems to be coming to fruition. For the full year, the company continues to expect revenue of $43.5 billion to $44.5 billion and an operating margin of 29%. On the earnings call, management underscored several reasons why it expects to be resilient during any economic turmoil. The entertainment sector has historically been steady during economic downturns. The company is also a global operator and brings in the majority of its revenue from outside the U.S. Additionally, the company doesn't operate in China, and it's exclusively a services business, meaning tariffs don't apply to its business. In response to a question about any economic impact from tariffs or the related uncertainty, co-CEO Greg Peters said, "We're paying close attention, clearly, to the consumer sentiment and where the broader economy is moving. But based on what we are seeing by actually operating the business right now, there's nothing really significant to note." If you're a Netflix shareholder, that's exactly what you want to hear. Is Netflix a buy? Consumer discretionary stocks aren't known for their resilience during economic downturns, but Netflix looks like an exception here, given its strengths above. The stock does trade at a premium right now, but it's easy to see why. It's executing on its content strategy and growing its reach around the world. As the undisputed leader in streaming, it's currently sustaining its growth despite the uncertainty roiling so much of the market. Netflix continues to be a smart buy. This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.