Netflix Inc (NASDAQ:NFLX, ETR:NFC) reported third-quarter results that exceeded Wall Street's expectations across key financial metrics, adding 5.07 million subscribers and driving a 15% year-over-year revenue growth.
The streaming giant posted earnings per share (EPS) of $5.40, surpassing analysts' forecasts of $5.12, while revenue reached $9.83 billion, slightly above the projected $9.77 billion.
The company's global paid memberships increased by 14.4% to 282.7 million, driven by a strong content lineup.
Netflix also posted free cash flow of $2.2 billion for the quarter, highlighting its financial strength as the streaming landscape grows increasingly competitive.
Looking ahead, Netflix provided robust guidance for the fourth quarter. The company expects EPS of $4.23 and revenue of $10.13 billion, supported by higher-than-expected subscriber growth due to seasonality and a "strong content slate." Netflix forecasts paid net additions in Q4 to surpass Q3's gains, further bolstering its momentum.
For fiscal 2025, Netflix anticipates revenue of $43.5 billion, aligning with estimates, while maintaining an operating margin of 28%.
Following the earnings release, Netflix shares rose 5.1% in after-hours trading. Shares of Netflix have gained over 25% year-to-date.
Key Financial Metrics:
- Q3 EPS: $5.40 (vs. $5.12 expected)
- Q3 Revenue: $9.83 billion (vs. $9.77 billion expected)
- Q4 Revenue Guidance: $10.13 billion (vs. $10.02 billion expected)
- Q4 Operating Margin Guidance: 22.0% (vs. 21.3% expected)