Netflix shares drop after earnings miss expectations
Netflix (NFLX) shares fell over 6% in premarket trading on Wednesday after the streaming giant reported earnings that fell short of analyst expectations for both revenue and profit.
The company posted revenue of $11.51 billion, slightly below Bloomberg’s consensus of $11.52 billion and its own guidance of $11.53 billion, up from $9.82 billion in the same quarter last year, News.Az reports, citing foreign media.
Earnings per share came in at $5.87, missing analyst estimates of $6.94 and Netflix’s internal forecast of $6.87, though higher than $5.40 a year ago.
Looking ahead, Netflix expects Q4 revenue to exceed Wall Street forecasts, projecting $11.96 billion versus the $11.90 billion analysts expected. Earnings for the quarter are also forecast to surpass estimates, at $5.45 per share compared to the $5.42 anticipated. For full-year 2025, the company targets revenue of $45.1 billion, toward the upper end of its previous $44.8–$45.2 billion range.
Netflix reported an operating margin of 28%, below its forecast of 31.5%, due to an unexpected charge related to an ongoing dispute with Brazilian tax authorities. The company noted that excluding this expense, it would have exceeded its margin target and does not expect the issue to materially impact future results. The 2025 operating margin is now projected at 29%, slightly below the prior estimate of 30%.
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