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By Justin Anderson
Netflix saw revenue jump 17% year-over-year in its fiscal third quarter to eclipse US$11.5 billion in revenues, though the streaming giant’s operating margin of 28% was below company estimates of 31.5%, which management attributed to “an expense related to an ongoing dispute with Brazilian tax authorities that was not in our forecast.” Without that, the company says it would have beaten the forecast.
Q3 operating income was up 12% from Q3 2024 to $3.2B, while diluted earnings per share (EPS) was up to $5.87 from $5.40 in the year earlier period – an increase of 9%, but $1.00 below forecast due to lower-than-expected operating income.
The company also predicted revenue growth of 17% in its upcoming fourth quarter, driven by growth in members, pricing and ad revenue, with a projected operating margin of 23.9%, up 2% year-over-year.
That results in a revenue projection of $45.1B in 2025, or 16% growth, which the company says is in line with its prior expectations for 15% to 16% revenue growth. The company is now forecasting a 2025 operating margin of 29% compared to its previous expectations of a 30% reported operating margin.
While Netflix no longer reports subscriber numbers along with its quarterly earnings, management did highlight a number of successful shows and films in its letter to shareholders along with viewership numbers for the quarter (ending October 19), and crime continues to be big for the streamer. The docuseries Amy Bradley Is Missing (35 million views) was cited as one of Netflix’s big Q3 hits, along with the feature documentary Unknown Number: The High School Catfish (55 million views).
The streamer also singled out several major projects it expects to do strong numbers when they premiere in Q4.
Netflix also enjoyed strong viewership numbers in key markets the U.S. and U.K. in the quarter, citing Nielsen and Barb data from Q4 of 2022 to Q3 of 2025 that showed the streamers’ quarterly TV view share has grown 15% and 22% in the U.S. and U.K., respectively.
This article originally appeared in Realscreen.
