Netflix Stock Rises 4% on Q3 Beat, TSMC Posts 54% Profit Surge as AI Drives Growth

Earnings Roundup: Netflix and TSMC Lead the Charge in Q3

Today’s earnings results delivered a slew of important data from major global companies, with Netflix and TSMC headlining the reports. Both companies exceeded Wall Street expectations, showcasing their growing influence in their respective industries.

Meanwhile, other significant players like Elevance Health, Nokia, and Alcoa also released their quarterly results, with varying outcomes. Here’s a detailed look at how Netflix and TSMC performed, followed by key highlights from other major earnings reports.

Netflix Adds 5.1 Million Subscribers, Beats Revenue and Earnings Forecasts

Netflix exceeded Wall Street forecasts by adding 5.1 million subscribers in Q3, boosting its total to 282.72 million, surpassing the anticipated 281.5 million. The company posted a revenue of $9.83 billion, narrowly beating the projected $9.77 billion, and EPS of $5.40, well above the forecasted $5.12.

A notable highlight was Netflix’s free cash flow, which surged to $2.19 billion, prompting the company to raise its full-year guidance to between $6 billion and $6.5 billion. Netflix’s ad-supported tier accounted for 50% of new sign-ups, signaling growing traction, though the company cautioned that ad revenue would take time to significantly impact the bottom line. The stock rallied 4% in after-hours trading, continuing its impressive 45% rise year-to-date.

TSMC Profit Soars on AI Demand, Stock Jumps Nearly 10%

Taiwan Semiconductor Manufacturing Co. (TSMC) also reported strong Q3 results, with net profit jumping 54% to NT$325.3 billion ($10.1 billion), surpassing expectations. Revenue increased 36% year-on-year to $23.5 billion, driven by high demand for its cutting-edge 3nm and 5nm chip technologies, used in AI and smartphones.

TSMC’s gross margin rose to 57.8%, and the company expects even stronger results in the fourth quarter, forecasting revenue between $26.1 billion and $26.9 billion. With TSMC shares climbing 9.79% on the report, the chipmaker’s performance underscored the robust demand for AI-related technologies.

Key Earnings from Other Major Companies

• Elevance Health: Shares dropped 10% due to weaker-than-expected Q3 earnings, driven by Medicaid challenges.
• Nokia: Fell 5% after an 8% dip in sales, although profit increased by 22%.
• CSX: Dropped 4% after reporting weaker-than-expected earnings of $0.46 per share and $3.62 billion in revenue.
• Alcoa: Shares rose 7% after the aluminum producer beat earnings expectations, reporting adjusted earnings of $0.57 per share, though revenue was slightly below estimates.
• Kinder Morgan: Declined 2.1% after missing earnings and revenue forecasts, with adjusted EPS of $0.25 on $3.70 billion in revenue.

Conclusion: Strong Performances, Mixed Reactions

Both Netflix and TSMC exceeded expectations, highlighting their continued leadership in streaming and semiconductors, respectively. Netflix’s impressive subscriber growth and TSMC’s profit boost from AI demand are clear indicators of their upward trajectory. However, not all companies had the same success, as Elevance Health and Nokia saw significant drops after disappointing results. As Q4 approaches, investors will watch closely to see how these companies adjust their strategies in a challenging market.