Netflix reported third-quarter results on Monday that exceeded Wall Street estimates, with growth in its advertising-supported tier and live programming lifting revenue and prompting executives to raise full-year guidance.

The Los Gatos, California-based company has leaned heavily on its cheaper ad-supported plan and live sporting and entertainment events to sustain revenue growth. Analysts at Morgan Stanley and Evercore ISI had projected continued double-digit revenue gains and expanding operating margins for the quarter.

Netflix stopped disclosing quarterly subscriber additions in early 2025, directing investors instead to revenue, operating margin and free cash flow as core metrics. The company pointed to advertising revenue growth and pricing power across key markets as the main drivers of the quarter.

The results arrive as US earnings season accelerates, with investors scrutinising large technology and media companies for evidence that spending and consumer demand remain resilient. A strong Netflix report typically sets a bullish tone for other streaming and advertising-dependent firms reporting later in the week.

Netflix co-chief executive Greg Peters said on the earnings call: "Our advertising business is scaling, and live events continue to broaden engagement."