Netflix stumbles despite record revenue — stock dives after earnings miss
Oct 21, 2025 By MarketDepth
Netflix posted a third‐quarter 2025 revenue of US $11.5 billion, a strong year-on-year increase of about 17%. Still, while top-line growth impressed, the company’s earnings fell short of expectations and sent its stock tumbling roughly 6% in after-hours trading.
Despite the revenue beat, Netflix delivered diluted earnings of US $5.87 per share, well below the consensus estimate of around US $6.96. The miss was largely attributed to an unexpected US $619 million tax‐related expense stemming from a legal dispute in Brazil, which weighed on profitability and operating margins.
The company’s net income rose to around US $2.5 billion, up modestly from the prior year, but the margin decline and EPS miss overshadowed the top‐line success. Netflix emphasized that the Brazil tax issue was a one‐time hit and reaffirmed its full‐year revenue outlook of approximately US $45.1 billion.
