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Netflix Revenue Jumps 17% as Brazil Tax Charge Weighs on Profit and Shares

A $619 million Brazil tax provision pushed EPS below forecasts, underscoring a one‑time hit against otherwise solid momentum.

Overview

  • Q3 revenue rose to $11.51 billion, net income reached about $2.55 billion, and EPS came in at $5.87, missing analyst estimates.
  • Netflix recorded roughly $619 million tied to a dispute with Brazilian tax authorities and said it does not expect a material impact on future results.
  • The company reported its best quarter for advertising and expects 2025 ad revenue to roughly double versus 2024, with tests of new AI-driven ad formats.
  • Guidance for Q4 calls for $11.96 billion in revenue and EPS of $5.45, citing the final season of Stranger Things and live NFL Christmas games.
  • The stock fell about 5–6% in after-hours trading, and executives were non-committal about reports linking Netflix to potential bids for Warner Bros. Discovery.