Netflix (NFLX) missed Wall Street third-quarter earnings targets due to an unexpected expense from a dispute with Brazilian tax authorities, though it offered a slightly stronger-than-expected forecast for the rest of the year.
Shares fell 4% to $1,186.82 in after-hours trading on Tuesday.
The streaming service posted net income of $2.5 billion and diluted earnings-per-share (EPS) of $5.87 for July through September. Analysts had expected $3.0 billion in net income and $6.97 EPS. The quarter saw the animated movie “K-Pop Demon Hunters” become the most-watched film in Netflix history.
Netflix said its operating margin for Q3 was 28%, down from the 31.5% guidance, primarily due to a $619 million Brazilian tax expense. The company added that the dispute is not expected to materially impact future results.
For Q4, Netflix forecast revenue of $11.96 billion, slightly above Wall Street’s projection of $11.90 billion, and projected EPS of $5.45, a penny ahead of analysts’ expectations.
Upcoming highlights for the company include the final season of “Stranger Things” in November and December and two live NFL games on Christmas.
Netflix continues to seek growth through advertising and video games, areas that so far contribute minimally to revenue. The company has more than 300 million customers worldwide and faces stiff competition from YouTube, Amazon Prime Video, Disney+, and others.
Earlier this year, Netflix stopped reporting subscriber numbers, urging investors to focus on revenue and profitability.
“We’re finishing the year with good momentum and have an exciting Q4 slate,” Netflix said in its shareholder letter.
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Two men were killed after the United States carried out a missile strike on a suspected drug-trafficking boat in the eastern Pacific Ocean on Friday (24 April), the military said.
The United States has issued an international warning accusing Chinese firms, including AI start-up DeepSeek, of allegedly stealing intellectual property from American artificial intelligence labs.
Argentina has reiterated its interest in resuming talks with the United Kingdom over the Falkland Islands, a disputed archipelago in the South Atlantic, after reports that an internal Pentagon email suggested reviewing Washington’s support for the UK’s claim amid tensions over the Iran war.
Iran says no U.S. meeting is planned in Islamabad, despite Foreign Minister Abbas Araghchi arriving in the Pakistani capital. He is also set to visit Muscat and Moscow for regional consultations.
Two local trains collided head-on north of Copenhagen on Thursday (23 April), injuring 17 people, five of them critically, according to emergency services.
The U.S. military is redirecting at least three Iranian-flagged tankers after intercepting them in Asian waters near India, Malaysia and Sri Lanka, shipping and security sources said on Wednesday. Meanwhile, Tehran said U.S. breaches, blockades and threats are undermining “genuine negotiations.”
Diplomatic efforts to end the Iran war are intensifying, with the White House confirming that U.S. President Donald Trump will send special envoy Steve Witkoff and adviser Jared Kushner to Islamabad for talks with Iran under Pakistani mediation.
Russian emergency services have contained a major fire at the Tuapse oil refinery on the Black Sea coast, local officials said on Thursday, ending a four-day effort after a Ukrainian drone strike.
Slovenia’s national broadcaster RTV Slovenia has confirmed it will not air the Eurovision Song Contest 2026, joining a widening boycott over Israel’s participation.
Two men were killed after the United States carried out a missile strike on a suspected drug-trafficking boat in the eastern Pacific Ocean on Friday (24 April), the military said.
Argentina has reiterated its interest in resuming talks with the United Kingdom over the Falkland Islands, a disputed archipelago in the South Atlantic, after reports that an internal Pentagon email suggested reviewing Washington’s support for the UK’s claim amid tensions over the Iran war.
China has urged the European Union to take its concerns seriously over new cybersecurity and digital regulations, warning they could create difficulties for Chinese companies operating in Europe.
Russia and Ukraine have swapped prisoners of war, according to officials on both sides. Ukraine’s President Volodymyr Zelenskyy said 193 prisoners, including soldiers and border guards, had been returned from Russia, some injured and facing criminal charges.
Türkiye and the United Kingdom on Thursday signed a wide-ranging strategic partnership agreement to boost bilateral cooperation, especially in defence. The deal, signed in London, signals a “new era” in relations between the two NATO allies.
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