Netflix Shares Surge Following Strong Q3 Earnings

Netflix experienced a significant increase in its stock price, rising nearly 7% after announcing third-quarter earnings that surpassed expectations. The streaming giant reported earnings per share of $5.40, exceeding the consensus estimate of $5.12. Additionally, revenue was higher than anticipated, reaching $9.83 billion for the quarter, which slightly surpassed the forecast of $9.77 billion.

A key driver of Netflix's growth was the significant momentum in its ad-supported membership tier, which saw a 35% increase quarter-over-quarter. While Netflix doesn't expect advertising to be its primary growth engine until 2026, the ad-tier already accounted for over half of the sign-ups in regions where it's available. 

The company’s projections for the fourth quarter are optimistic, with expected revenue growth of 14.7%, reaching $10.13 billion. For 2025, Netflix forecasts revenue between $43 billion and $44 billion, representing a growth of 11% to 13% from its expected 2024 revenue of $38.9 billion.

Analysts welcomed the results, with Citi noting that Netflix’s outlook for the fourth quarter exceeded expectations. The company’s ongoing investments in content, despite a challenging media landscape, have positioned it well for future growth. 

With a solid content pipeline, Netflix is set to produce nearly one in ten global scripted series next year, giving it a significant advantage over competitors. Netflix’s continued focus on content has helped it regain some of the growth it lost in recent years, leaving the company poised for strong performance in the years ahead.