LOS GATOS, Calif., Oct. 18, 2024 Following the release of its superb Q3 earnings report, marked by a 15% increase in revenue and an operating income margin of 29.6%, shares of Netflix (NFLX, Financials) jumped 5% on Friday. While free cash flow jumped 16% to $2.2 billion, the streaming giant showed a 14.4% YOY gain in premium memberships. Additionally, Netflix upgraded its full-year free cash flow projection from $6.0 billion and $6.5 billion.

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Driven by greater paid net adds, Netflix forecasts 15% revenue growth for Q4. Its operating margin is expected to be 22%, a 5-point improvement from last year. With an operating margin of 27%, the company projects income growth at the top end of its guidance at 14% to 15% ahead for the year.

Moreover, with an operational margin of 28% and projected revenue between $43 billion and $44 billion, Netflix fiscal year 2025 guidance was hailed by investors. Also, as Netflix continues to grow its global presence while raising its financial performance, the company's stellar results and positive attitude continue to inspiring investor confidence.

This article first appeared on GuruFocus.