Netflix Misses EPS, Touts Ads Growth, Guidance | JQJO

Netflix’s Q3 2025 results missed both Wall Street and internal EPS targets but met revenue expectations, after an unforecast expense from a Brazilian tax dispute cut operating margin to 28% versus 31.5% guidance. Adjusted EPS was $5.87 on $11.51 billion in revenue; shares fell up to 6% after hours. The company logged its best ad sales quarter, aims to more than double ads revenue in 2025, and will test AI-driven ad formats in Q4. Full-year guidance: $45.1 billion revenue, 29% margin; free cash flow lifted to about $9 billion. “KPop Demon Hunters” led viewership and returns to theaters.