Netflix Q3: ad cut to $2.7B is ~5% of $51.1B revenue; $300M cut is ~0.6% of the year; EPS +49% vs net income +44% on buybacks
Netflix reported Q3 results Tuesday: revenue up 12% to $12.87B, a record 34.6% operating margin and a 2026 ad forecast cut from ~$3B to ~$2.7B. Shares fell ~5% after hours.
Ads are still only ~5% of the $51.1B year. The cut is ~0.6% of revenue. EPS grew 49% vs 44% for net income because the share count is ~3% smaller.
https://apnews.com/article/netflix-amazon-disney-skydance-332fc9ae36c9ecc788cb163a70e655ed
Sources: Reuters: Netflix Q4 EPS forecast 67 cents vs 73 expected; 2026 ad revenue forecast cut to ~$2.7B from ~$3B · Netflix 8-K: Q3 2026 shareholder letter; 2026 revenue guide $51.1B; diluted shares 4,195M vs 4,340M in Q3'25 · @DividendTalks: Netflix beats earnings, guidance tells a different story; Q4 EPS $0.67 vs $0.73 expected
Not financial advice. For informational and educational purposes only.
In July, Treasury fined a US company $200,000 because a subsidiary failed to report a $92,478 investment in a Chinese AI and robotics…
In July, Treasury fined a US company $200,000 because a subsidiary failed to report a $92,478 investment in a Chinese AI and robotics company. Treasury announced that first-ever penalty on Oct 7. It's the enforcement backdrop for the proposed rule Treasury put out on Thursday, Oct 22, and I think it tells you how seriously this program is going to…
Viral chart: global stocks down ~$10T from highs, South Korea -43%; a 43% drop needs a 75% gain to recover
A chart going around X this weekend says global stock markets have lost about $10 trillion from their yearly highs, with South…
US semiconductor producer prices +26% YoY in September; at that pace chip prices double in about 3 years
US producer prices for chips and electronic components rose 26% YoY in September, the 6th…
Black Monday 1987 — 22.6% in a Day, Still the Benchmark
On October 19, 1987, the Dow fell 508 points, or 22.6%, closing at 1,738.74 versus 2,246.74 on October 16, still the Dow's worst one-day percentage…
On October 19, 1987, the Dow fell 508 points, or 22.6%, closing at 1,738.74 versus 2,246.74 on October 16, still the Dow's worst one-day percentage decline on record. The S&P 500 dropped 20.47%, from 282.70 to 224.84, its own worst day. Analyses…