Netflix co-founder Reed Hastings attended the red carpet event for Netflix’s launch at Palazzo Del Ghiaccio in Milan on October 22, 2015.
On Friday, Netflix shares surged by 11% after the streaming giant released its third-quarter earnings, which surpassed expectations.
The company announced earnings per share of $5.40 for the quarter ending September 30, exceeding the $5.12 consensus estimate from LSEG. Revenue also exceeded predictions, reaching $9.83 billion, compared to the expected $9.77 billion.
Importantly, Netflix reported significant growth in its ad-supported membership tier, which rose 35% compared to the previous quarter. While the company does not anticipate ads to be a major growth factor until 2026, it noted that over 50% of new sign-ups in the third quarter came from this tier in regions where it is available.
Looking ahead, Netflix provided a positive forecast for the December quarter, projecting a 14.7% increase in revenue to $10.13 billion. For 2025, the company is expecting revenue between $43 billion and $44 billion, indicating growth of 11% to 13% from the anticipated $38.9 billion revenue in 2024.
Citi analysts noted in their report following Netflix’s earnings that the company’s fourth-quarter outlook “exceeded the Street,” while its 2025 forecast was “relatively in line with consensus estimates.”