Netflix Inc. reported a 17 percent jump in third-quarter revenue to USD11.51 billion, driven by membership gains, price adjustments, and higher ad sales. With more than 300 million paid users in over 190 countries, the streaming giant continues to demonstrate its ability to grow even as competition intensifies.
Net income rose at a slower pace of 7.7 percent to USD2.55 billion as operating margin slipped to 28 percent from 30 percent a year earlier. The company attributed the decline mainly to a USD619 million charge tied to a tax dispute with Brazilian authorities covering assessments from 2022 through this year’s third quarter. The one-off expense, booked under cost of revenue, was not part of its prior guidance.
Excluding the charge, Netflix’s underlying profitability would have been broadly in line with expectations, underscoring stable fundamentals amid rising global content and marketing costs. The results also highlight the platform’s ability to sustain growth through a mix of subscription and advertising revenue streams.
Looking ahead, Netflix projected another 17 percent revenue increase in the fourth quarter, supported by continued membership growth, stronger ad sales, and pricing gains. It expects its operating margin to improve to 23.9 percent year on year, with net income forecast at USD2.36 billion.
Separately, the company announced a 10-for-1 stock split aimed at making shares more accessible to employees. Shareholders of record on November 10 will receive nine additional shares per share held, with split-adjusted trading to begin November 17.
Netflix shares slipped 0.1 percent to USD1,097.02 on Thursday after the earnings report, as investors weighed the one-time charge against sustained revenue momentum. The closing price, however, was a rebound from the intraday low USD1,085.77.
