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Q3 Earnings: Netflix Stumbles, SpaceX Soars, and AT&T, Danaher and Elevance Raise Their Outlooks

Netflix beat on profit but disappointed on its forecast and ad business. SpaceX more than doubled revenue. Before Wednesday's open, AT&T, Danaher and Elevance raised guidance, while Philip Morris slipped on cost pressure.

EarningsBy · Markets EditorUpdated 4 min read

Earnings season shifted from banks and industrials to media, tech and health care over the past 24 hours, and the reactions were sharply split. Netflix was punished for a soft outlook, SpaceX was rewarded for a quarter that blew past estimates, and a batch of Wednesday-morning reporters showed that steady, guidance-raising quarters still get noticed. Here's what happened and why it matters.

Netflix: a profit beat, a weak forecast

Netflix said third-quarter revenue grew 11.8% to $12.874 billion and diluted EPS came in at $0.87, according to its shareholder letter and 8-K. Analysts surveyed by LSEG had expected 82 cents, Reuters reported. Operating margin was 34.6%, up from 28.2% a year earlier, which the company said was ahead of its forecast mainly because of the timing of expenses.

The trouble was the outlook. Netflix guided fourth-quarter revenue to $13.44 billion and EPS to $0.67, below the 73-cent average estimate, and forecast fourth-quarter operating margin of 26.0%. It also cut its 2026 advertising revenue forecast to roughly $2.7 billion from about $3 billion, saying some ad product features rolled out more slowly than expected. Revenue growth was the slowest in nearly three years, according to Reuters.

Co-CEO Ted Sarandos acknowledged the pressure: "I know that we could do better," he said on the post-earnings call. The company had cut 6% of its workforce and replaced two top programming executives days earlier. Shares fell nearly 6% to $64.66 after hours from a $68.69 close, Reuters reported, and the Wall Street Journal noted the report showed the slowest revenue growth in years. Netflix still expects 2026 revenue of $51.1 billion, up 13%, with a 31.5% operating margin.

SpaceX: AI compute becomes the biggest business

SpaceX's second report as a public company was a different story. Revenue rose 161% to $14.6 billion, income from operations was $2.8 billion, net income was $4.4 billion and adjusted EBITDA was $8.8 billion, according to its earnings release. LSEG estimates had called for $12.72 billion in revenue and a $1.57 billion profit, per Reuters.

The Super Intelligence segment brought in $7.56 billion, now the company's largest line, mostly from renting compute to Anthropic, Google and Reflection AI. Connectivity revenue, mainly Starlink, rose 69% to $5.25 billion, and Starlink reached 13.6 million subscribers against 12.19 million expected, though average monthly revenue per subscriber has fallen to $69 from $99 in 2023 as the service expands abroad with cheaper plans, Reuters said. Capital spending reached $19.6 billion, including $16.4 billion for AI, and SpaceX expects it to stay near that level. Shares rose more than 8% premarket, according to Investing.com.

AT&T: bundles drive a guidance raise

AT&T reported third-quarter revenue of $32.3 billion, up 5.3% and above the $31.69 billion LSEG estimate, and adjusted EPS of 65 cents versus 60 cents expected, Reuters reported. It added 379,000 postpaid phone subscribers, roughly in line with FactSet's estimate, plus 442,000 fiber and 327,000 fixed wireless internet customers. The company raised its 2026 adjusted EPS forecast to about $2.40 from $2.25 to $2.35. About 43% of households signing up for AT&T internet also take its wireless plans, a bundle the company is counting on to reduce churn. Details are in AT&T's release.

Danaher and Elevance: health care surprises to the upside

Danaher said revenue rose 8.5% to $6.6 billion and adjusted EPS grew 11.5% to $2.11, according to its release, ahead of a $1.92 consensus listed by StreetInsider. CEO Julie Sawyer Montgomery cited "improving trends" across its end markets. Elevance Health posted adjusted EPS of $6.99 against a $4.70 estimate on revenue of $50.4 billion, raised its full-year adjusted EPS floor to at least $29.00 and lifted its operating cash flow outlook to at least $6.5 billion, and its shares rose 1.8% premarket, per Investing.com.

Philip Morris and Capital One

Philip Morris beat with adjusted EPS of $2.36 versus $2.30 and revenue of $11.4 billion versus $11.32 billion, and raised its quarterly dividend 8.8% to $1.60, Investing.com reported. Shares still fell about 2.5% premarket after the company said organic operating income growth was more likely to land in the middle or lower half of its 7% to 9% range, citing energy-related inflation and U.S. investment. Capital One rallied 3.2% premarket after adjusted EPS of $6.69 topped estimates by about 22%, helped by a wider net interest margin and a $225 million reserve release, according to Investing.com.

Where Loomi fits

This week's pattern is clear: guidance matters more than the headline beat. Netflix and Philip Morris both topped estimates and fell, while companies that raised outlooks were rewarded. Those reactions often show up first in options pricing, and Loomi's options scanner helps spot where implied moves look rich or cheap ahead of a report. If you'd rather not trade every print by hand, Loomi's automated strategies follow predefined rules, with track records on results and verification.

What's next

Tesla, Meta, IBM, Texas Instruments and Lam Research report after Wednesday's close. After SpaceX's quarter and Musk's merger comments, Tesla's call may be about much more than cars, and Meta's spending outlook will be measured against the same AI payback questions that hit the market last week. For context on the chip side, see our look at TSMC's record quarter.

This article is for information only and is not financial advice.

— Rowan Ellery, Markets Editor, Loomi.Ai. Questions or corrections? See our research methodology.

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FAQ

Why did Netflix stock fall after Q3 2026 earnings?

Netflix beat on EPS ($0.87 vs. $0.82) but guided Q4 EPS to $0.67, below the $0.73 consensus, and cut its 2026 ad revenue forecast to about $2.7 billion from about $3 billion. Revenue growth of 11.8% was its slowest in nearly three years.

How much revenue did SpaceX report for Q3 2026?

SpaceX reported revenue of $14.6 billion, up 161% year over year, with net income of $4.4 billion. Its Super Intelligence (AI) segment generated $7.56 billion, mostly from renting compute capacity.

Did AT&T raise its 2026 guidance?

Yes. AT&T raised its 2026 adjusted EPS forecast to about $2.40 from $2.25–$2.35 after Q3 adjusted EPS of $0.65 and revenue of $32.3 billion.

Loomi.Ai provides educational market research, not financial advice. Nothing here is a recommendation to buy or sell any security. Trading stocks, futures and options involves substantial risk of loss. Estimates and schedules cited were current at publication and can change.

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