Netflix (NFLX, Financial) experienced a pre-market surge of over 5%, reaching $723.99, after releasing its third-quarter earnings report. The company's revenue hit $9.825 billion, reflecting a 15% increase year-over-year and surpassing the market expectation of $9.776 billion. Additionally, the diluted earnings per share (EPS) climbed to $5.40, marking a 44.8% growth and outpacing the anticipated $5.12.
The streaming giant has issued a stronger-than-expected revenue forecast for the fourth quarter, and has slightly raised its annual guidance for the year. Netflix projects fourth-quarter revenue to be $10.13 billion, against analysts' estimates of $10.05 billion. For the 2025 fiscal year, the company anticipates revenue in the range of $43 billion to $44 billion, compared to analysts' expectations of $43.4 billion. The projected fourth-quarter diluted EPS is $4.23, higher than the analysts' forecast of $3.9.
Following this positive earnings announcement, Morgan Stanley has raised Netflix's target stock price from $820 to $830.
