Netflix Shares Slide After Q3 EPS Miss Tied to $620 Million Brazil Tax Hit

Overview

• Netflix posted Q3 revenue of about $11.5 billion, up roughly 17% year over year on membership growth, pricing and an accelerating ad tier, but EPS of $5.87 missed forecasts.
• An unexpected roughly $619–$620 million non-income tax charge in Brazil reduced the operating margin to about 28% versus prior guidance of 31.5%.
• The stock fell about 9% to 10% after the results were released.
• Management guided Q4 revenue to roughly $11.96 billion and EPS to about $5.45, slightly above consensus, and outlined full‑year targets of around 16% revenue growth to $45.1 billion with a 29% operating margin.
• Netflix highlighted content, advertising and live programming— including NFL Christmas Day games and the Jake Paul vs. Gervonta Davis event— as growth drivers, while analysts and market commentators delivered mixed reactions with some urging a buy-the-dip.