Overview

* Netflix ( NFLX ) Q3 revenue grew 17% yr/yr

* Operating margin hit by $619 mln Brazilian tax expense

* Company achieved highest quarterly view share in US and UK

Outlook

* Netflix ( NFLX ) expects Q4 revenue growth of 17% driven by membership, pricing, and ad revenue

* Netflix ( NFLX ) forecasts 2025 revenue of $45.1 bln, in-line with prior expectations

* Netflix ( NFLX ) revises 2025 operating margin forecast to 29% due to Brazilian tax impact

Result Drivers

* REVENUE GROWTH - Driven by membership growth, pricing adjustments, and increased ad revenue

* OPERATING MARGIN IMPACT - $619 mln Brazilian tax expense reduced operating margin

* STRONG ENGAGEMENT - Record quarterly view share in US and UK

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Meet $11.51 $11.51

Revenue bln bln (39

Analysts

)

Q3 EPS $5.87

Q3 Net $2.5 bln

Income

Q3 Free $2.66

Cash bln

Flow

Q3 $3.2 bln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 38 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the online services peer group is "buy"

* Wall Street's median 12-month price target for Netflix Inc ( NFLX ) is $1,420.00, about 12.8% above its October 20 closing price of $1,238.56

* The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 48 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)