Netflix (NFLX) investors are buzzing with excitement as the company’s latest earnings report has exceeded all expectations. The streaming giant’s stock surged by over 8% on Friday, following the announcement of impressive third-quarter earnings and subscriber growth numbers.

In the third quarter, Netflix reported a 15% increase in revenue, surpassing the consensus estimate of $9.78 billion and reaching $9.83 billion. This remarkable growth can be attributed to a variety of factors, including price increases on specific subscription plans from last year and revenue initiatives like the restriction on password sharing and the introduction of an ad-supported tier.

Looking ahead to the fourth quarter, Netflix is projecting revenue of $10.13 billion, which is higher than the consensus estimate of $10.01 billion. Furthermore, the company has forecasted revenue between $43 billion and $44 billion for the full year of 2025, indicating a significant 11% to 13% increase from its anticipated 2024 revenue.

Operating margins are also expected to improve, with Netflix projecting a full-year operating margin of 27%, up from the previous 26% estimate. The company’s diluted earnings per share (EPS) in the third quarter exceeded expectations, coming in at $5.40 compared to the consensus expectation of $5.16. This figure is also significantly higher than the $3.73 EPS reported in the same quarter last year.

Subscriptions saw a substantial increase in the third quarter, with an additional 5 million subscribers joining the service. Popular programs like “The Perfect Couple” and “Nobody Wants This” helped drive this growth, along with the 8.05 million net additions in the second quarter. Netflix now boasts a total of 8.8 million paying subscribers.

Looking ahead to the future, Netflix is optimistic about its subscriber growth, citing a strong content slate and typical seasonality as driving factors. Upcoming releases such as “Squid Game” Season 2, the Jake Paul vs. Mike Tyson fight, and two NFL games on Christmas Day are expected to attract even more subscribers.

Investors have noted Netflix’s expansion into live events and athletics, as well as the continued growth of the ad-supported tier, which represents over 50% of sign-ups in select countries. The company is committed to expanding its advertising business and enhancing offerings for advertisers. Ads membership was up 35% quarter on quarter, and the ad tech platform is set to launch in Canada in the fourth quarter and more broadly in 2025.

Overall, investors are optimistic about Netflix’s future prospects, with many predicting continued growth and success for the streaming giant. With strong earnings, revenue growth, and a robust subscriber base, Netflix is well-positioned to thrive in the ever-evolving entertainment industry.