Key Points Netflix matched top-line estimates with 17% growth in the third quarter. The company had a large one-time expense related to a Brazilian tax dispute. The ad tier continues to deliver strong growth. 10 stocks we like better than Netflix › Shares of Netflix (NASDAQ: NFLX) were sliding today in spite of a solid third-quarter earnings report last night. The streaming giant delivered strong revenue growth, meeting estimates, but its profits were dinged by a Brazilian tax issue. That and th ...

Han Myung-Gu / WireImage "KPop Demon Hunters" has drawn viewers to Netflix in recent months. Key Takeaways The streamer's third-quarter earnings fell short of Wall Street estimates after logging a one-time tax expense in Brazil. Netflix's stock is the biggest loser in the S&P 500 Wednesday, falling some 10%. Even the "KPop Demon Hunters" were no match for the jump scares in Netflix's (NFLX) latest earnings. The streaming giant has been riding high on the success of the Korean cultural import—its an ...

Core Insights - Netflix reported Q3 2025 earnings of $5.87 per share, missing estimates by 14.8% due to a one-time $619 million expense related to a tax dispute in Brazil, although this represents an 8.7% increase from $5.40 per share in the same quarter last year [1][2] - Despite the earnings miss, Netflix shares fell 5-7% in after-hours trading, but the stock has gained over 48.6% in the past year, reflecting strong operational performance and a successful content strategy [2] - Revenues increased by 17.2% year over year, driven by membership growth, higher subscription pricing, and increased advertising revenues, although it missed the consensus mark by 0.12% [3] Financial Performance - Operating income totaled $3.25 billion, up 12% year over year, but the operating margin was 28%, below the guidance of 31.5% due to the Brazilian tax dispute [8] - Marketing expenses rose 22.3% year over year to $786.3 million, while technology and development expenses increased 16.1% to $853.6 million [9] - Non-GAAP free cash flow was reported at $2.66 billion, an increase from $2.26 billion in the previous quarter, indicating improved operational efficiency [25] Content and Engagement - The animated film "KPop Demon Hunters" became Netflix's most-watched film ever with over 325 million views, significantly contributing to merchandise deals [10][12] - The third quarter saw record engagement, with Netflix achieving its highest quarterly viewing share in the U.S. and U.K. [6] - The return of "Wednesday Season 2" garnered 13.4 million views in its first week, contributing to a strong content slate [14] Advertising and AI Integration - Netflix recorded its best advertising sales quarter ever, on track to more than double ad revenues in 2025 [18] - The company is leveraging AI for ad formats and content recommendations, enhancing its advertising technology [19][23] - Netflix declared itself "all in" on generative AI, utilizing it for content creation and operational efficiencies [21][22] Future Outlook - For Q4 2025, Netflix expects revenues of $11.96 billion, a 16.7% year-over-year growth, and projects earnings per share of $5.45 [27] - The full-year 2025 revenue forecast is set at $45.1 billion, reflecting a 16% growth year over year, with an adjusted operating margin forecast of 29% [28] - The company anticipates free cash flow of approximately $9 billion for the full year, up from previous estimates [29] Upcoming Content - The Q4 2025 content slate includes the final season of "Stranger Things" and major film releases like Guillermo del Toro's "Frankenstein" [30] - Netflix is expanding its live programming strategy with significant events, including an NFL Christmas Day doubleheader [32]

Sheldon Cooper / SOPA Images / LightRocket / Getty Images Netflix shares dropped Wednesday after the streaming giant's earnings missed estimates Key Takeaways Major U.S. equities indexes slid Wednesday afternoon after a flurry of weaker-than-expected earnings reports. Netflix shares fell after the streaming giant's earnings missed analysts' estimates amid a tax dispute in Brazil. Intuitive Surgical shares soared after the surgical robot maker posted earnings that topped expectations. Major U.S. e ...

Netflix (NASDAQ: NFLX ) shares have sold off about 6% in after-market hours on a double miss, as revenue came in slightly below because of FX, and an unexpected tax charge in Brazil impacted what would otherwise beI aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a con ...

Netflix (NASDAQ: NFLX ) shares have sold off about 6% in after-market hours on a double miss, as revenue came in slightly below because of FX, and an unexpected tax charge in Brazil impacted what would otherwise beI aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a con ...

Core Viewpoint - Analysts believe that Netflix's third-quarter results, which fell short of estimates, do not raise significant concerns, emphasizing the company's advertising growth as a crucial factor for future success [1][4]. Analyst Ratings and Price Targets - Wedbush analyst Alicia Reese reiterated an Outperform rating, lowering the price target from $1,500 to $1,400 [1]. - JPMorgan analyst Doug Anmuth maintained a Neutral rating, reducing the price target from $1,300 to $1,275 [2]. - Goldman Sachs analyst Eric Sheridan kept a Neutral rating with a price target of $1,300 [2]. - Bank of America Securities analyst Jessica Reif Ehrlich reiterated a Buy rating with a price target of $1,490 [2]. - Morgan Stanley analyst Benjamin Swinburne maintained an Overweight rating with a price target of $1,500 [2]. - Guggenheim analyst Michael Morris maintained a Buy rating with a price target of $1,450 [2]. - Canaccord Genuity analyst Maria Ripps maintained a Buy rating with a price target of $1,525 [3]. Financial Performance and Future Outlook - Netflix's third-quarter results and fourth-quarter guidance were described as underwhelming, but analysts noted a compelling growth story [4]. - Analysts highlighted that Netflix is positioning for substantial growth in global advertising, which is expected to become the primary revenue driver by 2026 [5]. - JPMorgan noted that while the third-quarter results were solid, they lacked the upside seen in previous quarters, with ad revenue tracking ahead of expectations [6]. - Goldman Sachs pointed out the lack of detailed guidance for 2026 as a potential negative, but expects rising engagement and revenue growth [7]. - Bank of America noted that the absence of 2026 guidance likely does not indicate a change in underlying fundamentals [8]. - Analysts expect advertising revenue to more than double in 2025, with engagement growth and a constructive pricing backdrop [9]. Engagement and Content Strategy - Analysts observed that Netflix's engagement trends are improving, with a strong content slate contributing to record engagement in Q3 [10][11]. - Canaccord highlighted Netflix's record engagement and advertising growth as key factors in the quarterly results [11]. - Analysts believe Netflix's focus on organic growth will continue to yield membership growth, pricing growth, and increased advertising revenue [11]. Stock Performance - Netflix shares fell 10.1% to $1,115.69, with a year-to-date increase of 25.8% in 2025 [12].

Market Performance - The Dow dropped 147 points, S&P 500 fell 0.4%, and Nasdaq slid 0.9% due to weak earnings from Texas Instruments and Netflix [1][21] - Intuitive Surgical was a standout performer, surging 15% on stronger-than-expected revenue and earnings of $2.40 per share on $2.51 billion revenue [3][13] - Over 75% of S&P 500 companies reporting this quarter have beaten expectations, indicating a generally positive earnings season despite some high-profile misses [5][21] Company-Specific Earnings - Texas Instruments shares fell 4% after reporting weaker-than-expected Q4 earnings and disappointing guidance [1][21] - Netflix plunged 9% following a Q3 earnings miss, attributed to a $619 million expense related to a tax dispute in Brazil, despite steady subscriber growth [2][12][10] - Analysts suggest Netflix's growth phase may be slowing, leading to cautious market sentiment despite strong subscriber numbers [10][20] Sector Performance - The semiconductor sector broadly suffered, with AMD, On Semiconductor, and Micron Technology each dropping about 3%, and the VanEck Semiconductor ETF (SMH) pulling back 2% [1][14] - Energy and industrial sectors are showing relative stability amidst the mixed performance of technology stocks [7][20] Upcoming Earnings and Economic Indicators - Investors are focused on Tesla's upcoming Q3 earnings report, with expectations for updates on vehicle deliveries and energy business performance [15][19] - The September Consumer Price Index (CPI) report is anticipated to influence the Federal Reserve's rate decisions, with markets expecting a 0.25% cut in the overnight borrowing rate later this month [6][21]

Here to break things down is Loop Capital Markets managing director Alan Gould has a buy rating, a target of 1325. We were just chatting about it during the break. You want to explain the Brazilian thing first.>> Sure. So there was a Brazilian tax issue. It had been disclosed in previous 10 case and 10 cues.It didn't seem like a big deal. There was a Supreme Court, Brazilian Supreme Court case in August with another company uh where the ruling where the company lost and Netflix decided they now had to take ...

Here to break things down is Loop Capital Markets managing director Alan Gould has a buy rating, a target of 1325. We were just chatting about it during the break. You want to explain the Brazilian thing first.>> Sure. So there was a Brazilian tax issue. It had been disclosed in previous 10 case and 10 cues.It didn't seem like a big deal. There was a Supreme Court, Brazilian Supreme Court case in August with another company uh where the ruling where the company lost and Netflix decided they now had to take ...