Earnings Preview | Netflix Q3 financial report to be released soon, market expects a 33% year-on-year increase in net profit

According to the financial news app Zhitong Finance, Netflix (NFLX.US) is set to announce its third-quarter financial results on October 17th (Thursday) Eastern Time. Analysts expect Netflix's Q3 revenue to be $9.77 billion, a 14% year-on-year increase; net profit is expected to be $2.23 billion, a 33% year-on-year increase; and diluted earnings per share are expected to be $5.11, compared to $3.73 in the same period last year.

At the same time, analysts predict that Netflix's global user base as of the end of the third quarter will reach 286 million, an increase of about 4 million from the previous quarter and over 30 million from the same period last year. Netflix previously stated that it will stop reporting user data starting from 2025 and will focus on financial metrics instead.

Analysts believe that Netflix's crackdown on password sharing has been successful in attracting new users. However, Barclays analysts recently downgraded their stock rating on Netflix from "hold" to "sell," while maintaining a target price of $550. Analysts noted that Netflix's "growth algorithm is becoming increasingly complex."

KeyBanc analysts pointed out that the fourth quarter is crucial for Netflix, as the company will live stream NFL games for the first time on Christmas, which could serve as a catalyst for user growth on the streaming platform. In addition, Netflix will also become the official broadcaster of WWE Raw and other programs under TKO Group Holdings (TKO.US) starting next year