BUSINESS

Netflix Misses Earnings Amid Brazilian Tax Dispute

Netflix missed Wall Street profit forecasts in Q3 as an expense tied to a dispute with Brazilian tax authorities squeezed its operating margin to 28% versus 31.5% guidance. Revenue hit $11.51 billion, but diluted EPS of $5.87 trailed the $6.97 consensus, sending shares down up to 7% after hours. The company said higher ad sales—its best ad revenue quarter—price hikes, and subscriber gains lifted revenue 17% year over year, aided by Wednesday’s Season 2 premiere topping 7 billion September viewing minutes. Netflix touted expanding AI use and production guidelines, citing tools used on Happy Gilmore 2 and Billionaires’ Bunker.

Reviewed by JQJO team

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