$Netflix(NFLX.US) (-4% AH) after guiding to 4Q metrics that missed WS estimates. 3Q results met expectations. This was telegraphed last week when NFLX announced that it was cutting 6% of its workforce (1,000 positions) right before the 3Q print.

3Q:

- Revs $12.87B vs $12.87B est

- EPS $.87 vs $.82 est

- Free cash flow $2.88B vs $3.22B est

4Q guide:

- Revs $13.44B vs $13.51B est

- Operating income $3.5B vs $3.72B est

- EPS $.67 vs $.73 est

- Operating margin 26.0% vs 27.6% est

Commentary

- “Member response to our 2026 price changes is consistent with prior adjustments and our expectations, an indicator that our engagement …. remains healthy and that we continue to deliver strong value to members.”

At 19.2x FY’26 EPS, NFLX now trades at a below S&P 500 multiple with 10% long-term rev growth, which should limit downside despite another quarterly guidance miss.