Netflix Slides After Q3 EPS Miss on Brazil Tax Hit, but Outlook Tops Street

Overview

• Netflix reported Q3 revenue of $11.5 billion, up about 17% year over year, with EPS of $5.87 missing estimates after a roughly $619–$620 million Brazil tax assessment cut operating margin to about 28%.
• Shares fell roughly 9% to 10% following the results, which paired solid top‑line growth with the one‑off hit to profitability.
• Management guided Q4 revenue to about $11.96 billion and EPS near $5.45, slightly ahead of Wall Street expectations.
• Core trends remained positive as paid memberships grew, price increases and the ad‑supported tier lifted revenue, and Netflix pointed to upcoming content and live events such as NFL Christmas Day games and the Jake Paul vs. Gervonta Davis bout to drive engagement.
• Analyst and investor reactions were mixed: UBS kept a Buy rating with a $1,495 target, Wedbush cut its target to $1,400 but kept Outperform, JPMorgan trimmed to $1,275 with Neutral, Argus reiterated Buy at $1,410, and traders like Stephen Guilfoyle and Jim Cramer signaled a buy‑the‑dip stance.