Netflix Shares Slide Post-Bell as Soft Full-Year Guidance Offsets Third-Quarter Profit Beat

Original summary · What happened

Netflix released its third-quarter financial figures on Tuesday, recording revenue of $12.87 billion, representing an increase of nearly 12 percent year over year that matched consensus estimates. Profitability expanded meaningfully, with net income advancing to $3.66 billion, or 87 cents per share, from $2.55 billion, or 59 cents per share, in the identical quarter last year, exceeding projections of 82 cents per share. Management attributed the revenue expansion to broader subscriber additions alongside pricing adjustments enacted earlier this spring, while timing of expenditures assisted operating margins.

Despite the positive quarterly net income, shares slipped approximately 5 percent in extended trading after management issued subdued revenue expectations. For the fourth quarter, the video streamer projected revenue to increase by 11 percent to $13.44 billion. In addition, leadership narrowed its 2026 full-year revenue outlook to $51.1 billion. That guidance landed at the lower threshold of its earlier guidance band of $51.0 billion to $51.4 billion and fell short of the $51.2 billion consensus expectation among Wall Street analysts polled by LSEG.