Netflix's premarket share price rises by 5% following the release of its third-quarter earnings report that surpassed expectations.

• Netflix's third-quarter earnings surpassed expectations, causing its stock to rise by more than 5% on Friday.
• Netflix exceeded the LSEG consensus estimate with earnings per share of $5.40 for the period ending Sept. 30.
• Netflix experienced a 35% increase in its ad-supported membership tier quarter-over-quarter.

The media streaming giant reported third-quarter earnings and revenue that beat expectations, causing shares to jump on Friday.

The price of Netflix shares increased by 5.4% during premarket trading in the United States at 4:39 a.m. ET.

Netflix exceeded both earnings and revenue expectations for the three-month period ending Sept. 30, with earnings per share of $5.40 and revenues of $9.83 billion, compared to the LSEG consensus estimate of $5.12 and analysts' expectations of $9.77 billion.

Netflix experienced a 35% increase in its ad-supported membership tier in the third quarter. Despite expecting ads to be the primary driver of growth in 2026, the ad-tier accounted for over 50% of sign-ups in countries where it's available.

This breaking news story is being updated.