Internet television network Netflix (NFLX) late Tuesday delivered mixed results for the third quarter and guided only modestly higher than views for the fourth quarter. Netflix stock fell in extended trading.
The Los Gatos, Calif.-based company earned $5.87 a share on sales of $11.51 billion in the September quarter. Analysts polled by FactSet had expected Netflix to earn $6.96 a share on sales of $11.51 billion. In year-earlier period, Netflix earned $5.40 a share on sales of $9.82 billion.
Netflix blamed the earnings shortfall on expenses related to an ongoing dispute with Brazilian tax authorities.
For the current quarter, Netflix forecast earnings $5.45 a share on sales of $11.96 billion. Analysts had been looking for Q4 earnings of $5.43 a share on sales of $11.89 billion. In the same quarter last year, Netflix earned $4.27 a share on sales of $10.25 billion.
In after-hours trading on the stock market today, Netflix stock dropped more than 5% to 1,172.91. During the regular session Tuesday, Netflix stock rose a fraction to close at 1,241.35.
Netflix stock has been consolidating for the past 17 weeks at a buy point of 1,341.15, according to IBD MarketSurge charts. That buy point is also Netflix’s all-time high, reached on June 30.
Earnings report details to follow.
Netflix Stock Ranks First In Group
In streaming video, Netflix competes with Disney‘s (DIS) Disney+, Warner Bros. Discovery‘s (WBD) HBO Max, Amazon‘s (AMZN) Amazon Prime Video and Apple‘s (AAPL) recently renamed Apple TV, among others.
Last week, Netflix announced a deal to carry select video podcasts from streaming audio leader Spotify Technology (SPOT) on its platform. Shows like “The Bill Simmons Podcast,” “The Zach Lowe Show,” “The McShay Show,” “The Rewatchables” and “Conspiracy Theories” will be available to watch on Netflix in the U.S. in early 2026. Other markets will follow, the companies said in a news release.
Netflix stock ranks first out of 21 stocks in IBD’s Leisure-Movies & Related industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 95 out of 99.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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