Netflix's revenues did not meet expectations.

Netflix Announces Quarterly Results

Netflix has announced its third-quarter results. The company's revenue did not meet its declining expectations, and its stock fell by 6%.

Financial Performance

Revenue: $11.51 billion (Expectation: $11.52 billion, Last year: $9.82 billion)

Earnings per share: $5.87 (Expectation: $6.94, Last year: $5.40)

The company forecasts that it will generate revenue above Wall Street expectations in the current quarter. For the fourth quarter, $11.96 billion is projected.

Long-Term Expectations

Netflix has set a revenue target of $45.1 billion for the full year 2025. This figure is close to the upper limit of the previously projected range of $44.8 billion to $45.2 billion. The company anticipates an operating margin of 29%, slightly below the previous expectation of 30%.

Content Success and Advertising Revenues

Netflix stated that "engagement remained healthy" due to a strong flow of content in the third quarter. During this period, the fight between Canelo and Crawford attracted over 41 million viewers.

Additionally, the animated film KPop Demon Hunters became the most-watched film in Netflix history with 325 million views. The company indicates that its $7.99 ad-supported tier will be a long-term driver for user growth.

Competition and Market Relations

Analysts expect Netflix’s advertising revenues to reach $2.9 billion in 2025 and increase by 45% to $4.2 billion in 2026. However, despite a 40% rise in shares last year, it has lagged behind market and tech competitors.

Finally, the strategic alternatives review by Warner Bros. Discovery has raised claims that Netflix is among potential buyers, but analysts believe the likelihood of this situation creating a deal is low.