Netflix Reports Q3 2026 Earnings: Revenue Rises 12% to $12.87 Billion, Operating Margin 34.6%

A completed $1 billion bond deal funds an upcoming $1 billion debt maturity in the fourth quarter.

Rhea-AI Summary

Netflix (NFLX) reported third-quarter revenue growth of 12% year over year, with earnings rising and operating margin ahead of forecast. Revenue reached $12.87 billion, operating income rose 37% to $4.46 billion, and operating margin increased to 34.6% from 28.2%. Net income reached $3.66 billion, with diluted earnings per share of $0.87 versus $0.59.

Netflix expects 2026 revenue of $51.1 billion and operating margin of 31.5%. Revenue guidance is 0.2% below the prior range midpoint; expected advertising revenue fell to approximately $2.7 billion from approximately $3 billion because of slower ad-product rollouts. Expected free cash flow fell to approximately $12 billion from $12.5 billion, primarily because of a real estate transaction expected to close in Q4. Headcount reductions carry margin costs. Netflix repurchased $4.8 billion of shares in Q3 and ended the quarter with $8.2 billion in cash and cash equivalents.

22 points · 0 major

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Positive

• Moderate pointQ3 revenue rose 12% year over year to $12.87 billion, matching forecast.
• Moderate pointQ3 operating income increased 37% year over year to $4.46 billion.
• Moderate pointQ3 operating margin reached 34.6%, versus 28.2% a year earlier; expense timing primarily drove the forecast beat.
• Moderate pointQ3 net income rose 44% year over year to $3.66 billion.
• Moderate pointQ3 diluted EPS reached $0.87, versus $0.59 a year earlier.
• Moderate pointQ3 operating cash flow reached $3.2 billion, versus $2.8 billion a year earlier.
• Moderate pointQ3 free cash flow increased 8% year over year to $2.884 billion.
• Moderate pointQ3 repurchases returned $4.8 billion through purchases of 63.9 million shares; $22.3 billion of authorization remains. 1.7% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 operating margin is expected at 31.5%, versus 29.5% in 2025, implying operating income growth of 20%+.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue is forecast at $13,442 million, up 11.5% year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 operating margin is projected at 26.0%, versus 24.5% a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 earnings forecast includes $3,500 million operating income, $2,787 million net income and $0.67 diluted EPS.
• Moderate point$1 billion bond deal completed in Q3 provides funding for the upcoming Q4 debt maturity.

9 minor points

• Minor pointUCAN Q3 revenue grew 11% year over year to $5,628 million.
• Minor pointEMEA Q3 revenue grew 11% to $4,107 million; growth excluding currency effects was 9%.
• Minor pointLATAM Q3 revenue grew 17% to $1,603 million; growth excluding currency effects was 12%.
• Minor pointAPAC Q3 revenue grew 12% to $1,537 million; growth excluding currency effects was 15%.
• Minor pointCustomer cancellations improved year over year globally and in the US, outperforming forecast.
• Minor pointIndia Q3 revenue grew approximately 18% excluding currency effects, alongside its largest quarter of paid net additions.
• Minor pointIndia Q3 viewing hours grew 24% year over year; hours per member grew low-to-mid single digits.
• Minor point. Forward-looking: it has not happened yet and may not happen.Advertising expansion is planned for 15 new countries in 2027, with the first launches in March.
• Minor pointQ3 cost of revenues declined to $6.079 billion from $6.164 billion a year earlier.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance of $51.1 billion implies 13% growth but sits 0.2% below the prior range midpoint.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 advertising revenue expectations fell to approximately $2.7 billion from approximately $3 billion amid slower ad-product rollouts.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 free cash flow forecast fell to approximately $12.0 billion from $12.5 billion, primarily reflecting expected Q4 real estate closing.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Gross debt ended Q3 at $15.3 billion, approximately $1 billion above Q2; $1 billion matures in Q4.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 headcount reductions carry approximately 120 basis points of Q4 and 30 basis points of full-year margin impact.

4 minor points

• Minor pointQ3 technology and development expense rose to $1.033 billion from $853.584 million a year earlier.
• Minor pointQ3 sales and marketing expense rose to $837.051 million from $786.295 million a year earlier.
• Minor pointQ3 general and administrative expense rose to $466.367 million from $457.931 million a year earlier.
• Minor pointQ3 interest expense rose to $184.701 million from $175.294 million a year earlier.

News Explained

The bond financing is completed ahead of a $1 billion debt maturity due in the fourth quarter of 2026.

At Q3 end, Netflix reported $22.3 billion of capacity remaining under its share-repurchase authorizations, available for possible future buybacks rather than a reported additional purchase.

Separately, Netflix completed a $1 billion bond deal during Q3 to fund a $1 billion debt maturity due in Q4 2026; it reported gross debt about $1 billion above Q2, attributing the increase to that deal.

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LOS GATOS, Calif., October 20, 2026 – Netflix, Inc. (NASDAQ: NFLX) today reported financial results for the third quarter ended September 30, 2026 in its quarterly letter to shareholders.

Q3 2026 Financial Highlights

• We delivered our Q3 forecast and expect to deliver on our full year 2026 guidance.
  • Q3 revenue grew 12% year over year (11% on a F/X neutral basis¹) to $12.9B, consistent with our forecast. Operating margin was 34.6%, up from 28.2% in Q3’25 and ahead of our forecast primarily due to the timing of expenses.
  • For 2026, we expect revenue of $51.1B (+13% year over year) and an operating margin of 31.5%.
• The core of our service is delivering differentiated, exclusive, professionally produced series, films and live events. Q3 highlights include The Last House, Facing El Chapo, Death of the Pastor’s Wife, our NFL Game from Melbourne, and a very successful slate in India.
• We’ll continue to expand our entertainment offering through licensing and new ways to bring more third-party content to our service, like our TF1 partnership in France. Our audience, which is approaching one billion people, and our best-in-class product capabilities, make us great partners for studios, networks and creative talent.
• Member response to our 2026 price changes is consistent with prior adjustments and our expectations, an indicator that our engagement - which encompasses quantity, quality and variety of viewing - remains healthy and that we continue to deliver strong value to members.
• We’ll close out 2026 with an exciting slate including The Further Mis-Adventures of Cliff Booth, limited series The Murder of JonBenét Ramsey, starring Melissa McCarthy and Clive Owen, new seasons of The Diplomat, Nobody Wants This and Lupin, the series finale of Emily in Paris, three NFL games on Thanksgiving Eve and Christmas Day, and the Tyson Fury vs. Anthony Joshua fight.

Our summary results, and forecast for Q4, are below.

(in millions except per share data)	Q3'25	Q4'25	Q1'26	Q2'26	Q3'26	Q4'26 Forecast
Revenue	$11,510	$12,051	$12,250	$12,560	$12,874	$13,442
Y/Y % Growth	17.2%	17.6%	16.2%	13.4%	11.8%	11.5%
Operating Income	$3,248	$2,957	$3,957	$4,193	$4,459	$3,500
Operating Margin	28.2%	24.5%	32.3%	33.4%	34.6%	26.0%
Net Income	$2,547	$2,419	$5,283	$3,401	$3,664	$2,787
Diluted EPS	$0.59	$0.56	$1.23	$0.80	$0.87	$0.67
Net cash provided by operating activities	$2,825	$2,112	$5,290	$1,744	$3,162
Free Cash Flow	$2,660	$1,872	$5,094	$1,525	$2,884
Shares (FD)	4,340	4,317	4,298	4,261	4,195

¹ Excluding the year over year effect of foreign exchange rate movements and the impact of hedging gains/losses realized as revenues. Assumes foreign exchange rates remained constant with foreign exchange rates from each of the corresponding months of the prior-year period.

Key Q3 2026 metrics:

• Revenue: $12,874 million (+11.8% YoY, +11% F/X neutral)
• Operating Income: $4,459 million (+37% YoY)
• Operating Margin: 34.6% (+6.4 percentage points YoY)
• Net Income: $3,664 million (+44% YoY)
• Diluted EPS: $0.87 (+49% YoY)
• Free Cash Flow: $2,884 million (+8% YoY)
• Net Cash from Operating Activities: $3,162 million (+12% YoY)

Q3 Results and Forecast

Revenue in Q3 grew 12% year over year (+11% on a foreign exchange (F/X) neutral basis), and was in-line with our forecast. In Q3, revenue growth was driven primarily by subscription revenue, reflecting increases in memberships and pricing, growth in advertising revenue and a favorable impact from F/X rates, net of hedging. Membership growth benefited from continued, healthy retention in every region; globally and in the US, churn improved year-over-year and was better than forecast.

Q3’26 operating income totaled $4.5B (+37% year over year) and operating margin of 34.6% was up versus 28.2% in Q3’25. Both Q3 operating income and margin were ahead of forecast due primarily to the timing of expenses and the slight upside in revenue. As a result, diluted EPS for the quarter amounted to $0.87 vs. $0.59 in Q3’25 (+49% year over year).

As a reminder, the guidance we provide is our actual internal forecast at the time we report and we strive for accuracy. Our primary financial metrics are revenue for growth and operating margin for profitability. Our goal is to sustain healthy revenue growth, expand operating profit and margin, and deliver growing free cash flow.

In Q4, we expect revenue of $13.4 billion, which represents year over year growth of 12% (or 11% F/X neutral) driven by growth in memberships, pricing, and ad revenue. We project a Q4 operating margin of 26.0% which includes ~120 basis points negative impact associated with our recently announced headcount reductions, and compares with 24.5% in the year ago quarter. These organizational changes enable us to continue to aggressively invest in high impact areas to improve our service, and drive growth and innovation.

Our guidance for Q4 means that for the full year 2026 we expect revenue of $51.1B, or growth of 13% (+12% on a F/X neutral basis). This is 0.2% below the mid-point of our prior 2026 revenue forecast range - while subscription revenue growth has outperformed our expectations, we currently expect 2026 ad revenue of ~$2.7B vs. approximately $3B previously (due to slightly slower than expected rollout of some ad product capabilities). We anticipate an operating margin of 31.5% for 2026 (31.4% based on F/X rates as of January 1, 2026) vs. 29.5% in 2025. Our updated 2026 margin guidance includes ~30 basis points negative impact associated with our Q4 headcount reductions. Our forecast implies annual operating income growth of 20%+ for 2026.

Q4 2026 Forecast

• Revenue: $13,442 million (+11.5% YoY)
• Operating Income: $3,500 million
• Operating Margin: 26.0% (vs. 24.5% in Q4’25)
• Net Income: $2,787 million
• Diluted EPS: $0.67

Full Year 2026 Forecast

• Revenue: $51.1 billion (+13% YoY, +12% F/X neutral)
• Operating Margin: 31.5% (31.4% based on F/X rates as of January 1, 2026), vs. 29.5% in 2025
• Advertising Revenue: ~$2.7 billion (vs. approximately $3 billion previously)
• Free Cash Flow: approximately $12.0 billion (vs. prior projection of $12.5 billion)
• Cash content spend to amortization ratio: ~1.1x

Our Focus

Our mission is to entertain the world while building a wildly successful business. Our strategy is simple: invest in differentiated, exclusive, professionally-produced entertainment like Netflix originals that spark conversation, bring in more members, and make us a “must-have” service. We pair these originals, which anchor our service, with a broad, complementary selection of third-party programming, a great discovery experience, and leading global distribution. Together, this fuels engagement (quality, quantity, and variety of viewing) and, in turn, revenue and profit. The core of our service is streaming TV, film and live events, monetized via subscription and advertising. It represents the vast majority of our spending and nearly all of our revenue, and is the engine of our business for which we see a long runway of growth.

To successfully execute this strategy, we focus on three priorities: 1) delivering more entertainment value to our members, 2) leveraging technology to improve all aspects of our service, and 3) improving our monetization. These priorities work in concert to drive acquisition and retention, create member value that lets us occasionally raise prices, and increase advertiser demand. We reinvest returns in our business so we can win more moments of truth and fund the next wave of entertainment. Done well, this makes our service the one where members go first to look for entertainment and the last service they would cancel, with industry-leading retention and continued member and ARM² growth.

With intense competition and an explosion of content competing for consumer attention, strategic clarity and excellent execution are critical. In Q3, we delivered well across all three priorities, but we see room to do even better with focused, continuous improvement.

In Q3, we had a variety of hits from around the world that members loved. Plastic Beauty* (12M views³) is on track to be our most-viewed series ever in Japan; The Secret Woman* (47M) is trending to be our most-viewed Danish title ever; Facing El Chapo* (58M) is pacing to be our second most-viewed Mexican title globally; and The Perfect Lie* (17M) is on track to become our most-viewed series out of the Netherlands. Non-English viewing has grown from under 10% of total viewing a decade ago to more than a third today. These hits reflect our decade-long commitment to creating content around the world that resonates locally, and has the potential to travel globally.

Other successful Q3 titles include:

• UCAN: Death of the Pastor's Wife* (45M), The Idaho Murders: College Nightmare* (38M), My Life With The Walter Boys S3* (29M), Little House on the Prairie (29M), The Last House* (91M) and Why Did I Get Married Again* (36M)
• EMEA: The Gentlemen S2* (33M) and A Toxic Love Story* (43M) from the UK, Elite Force* (25M) from France, Blood Sacrifice* (23M) from Sweden
• LATAM: My Daughter's Father* (23M) from Mexico and Nando Between Two Worlds - A Sintonia Film* (18M) from Brazil
• APAC: The East Palace (21M) and Our Sticky Love* (22M) from Korea

Complementing our Netflix originals, we continue to expand our entertainment offering through licensing and bringing more third-party content to our service in new ways. Our broad distribution (we’re serving an audience approaching one billion people) and industry leading monetization make us great partners for studios, networks and creative talent. For example, we partnered with Take-Two to unveil a sneak peek of the highly anticipated Grand Theft Auto VI in August. And we recently secured a new licensing deal with Disney which brings a variety of current and library series and films to our service for our members to enjoy, including all five Ice Age films which reached our global weekly Top 10 list and are building consumer awareness in advance of Disney’s theatrical release of Ice Age: Boiling Point in February 2027.

Our investment in our product capabilities, including our new TV UI, enables us to seamlessly integrate and merchandise more third party content to Netflix members. This summer we launched our partnership with TF1, a leading French broadcaster. This partnership enables us to provide our French members with even more highly local series, film, news and sports programming, all within a frictionless choosing and viewing experience that complements our French slate and global programming. We’re pleased with the TF1 partnership and the early metrics indicate that it’s generating incremental viewing in France.

We also continue to invest in our ad tech stack (Netflix Ads Suite). In Q3, we extended programmatic access through globally-available CTV marketplace deals, and secured new partnerships with MercadoLibre in LATAM and AdForm in EMEA. We are also expanding capabilities to in-DSP measurement including reach, frequency, and attribution. Also, we will introduce our advertising tier to 15 new countries in 2027. The first tranche of new market launches will happen in March 2027: nine countries in EMEA, Colombia, Peru and New Zealand (a new addition from our previous announcement).

We know there’s some investor concern about our view hours growth. Member response to our 2026 price increases is consistent with prior price changes and our expectations, an indicator that our engagement - which encompasses quantity, quality and variety of viewing - remains healthy and that we continue to deliver strong value to members. But we do seek to accelerate growth in view hours as well, and we’re confident we’ll do that by relentlessly focusing and executing against the aforementioned strategy.

That confidence comes from seeing strong results when we execute well on our core strategy – our business in India in Q3 is an example. We delivered a great slate led by Lock Upp, our first daily reality series, which drove the most viewing of any title on Netflix in India ever⁴, the new scripted series Musafir Cafe* (9M) and the hit series Operation Safed Sagar* (11M). As a result, view hours in India grew 24% year over year, while view hours per member grew low-to-mid single digits in the quarter. Combined with our first transaction-based loyalty bundle with Flipkart, we achieved our largest quarter ever of paid net additions in India and grew Q3 revenue in India ~18% year over year on a F/X neutral basis.

To close out the year, our Q4 slate builds on the strategy outlined above:

• We’ll have new series including, from the US, the critically acclaimed East of Eden and The Diplomat S4, The Body, The Murder of JonBenét Ramsey, The Hunting Wives S2, and the sixth and final season of Emily in Paris, as well as Below from Canada, Pride and Prejudice from the UK, Lupin: Part 4 from France, and The Empress S3 from Germany.
• Our film releases feature The Further Mis-Adventures of Cliff Booth, starring Brad Pitt, directed by David Fincher, and written by Quentin Tarantino; Animals, starring Ben Affleck and Kerry Washington; Bad Day, starring Cameron Diaz; Steps, our new animated film featuring Ali Wong, Stephanie Hsu, and Amanda Seyfried; animated film Ray Gunn, starring Scarlett Johansson and Sam Rockwell and directed by Brad Bird; and Spain’s La Bola Negra and South Korea’s Possible Love, both of which have secured official selections as their countries’ submissions for Best International Feature Film category at the Academy Awards.
• And we have our biggest quarterly live slate to date with the NFL’s inaugural Thanksgiving Eve game (with a halftime performance by U2) and a Christmas Day doubleheader, plus the Tyson Fury vs. Anthony Joshua boxing match.

² Average revenue per membership.

³ A view is defined as hours viewed divided by runtime for each title. Views for a title are based on the first 91 days since the release of each episode (less than 91 days denoted with an asterisk and data is from launch date through October 18, 2026). We publish our top titles based on views each week at Netflix Top 10.

⁴ Based on view hours in the first 91 days.

Cash Flow and Capital Structure

Net cash generated from operating activities was $3.2B vs. $2.8B in the prior year period. Free cash flow (FCF)⁵ in Q3’26 totaled $2.9B vs. $2.7B in Q3’25. We have adjusted our expected 2026 FCF forecast to approximately $12.0B (vs. our prior projection of $12.5B) due primarily to the expected closing of a real estate transaction in Q4. We continue to expect an annual cash content spend to amortization ratio of ~1.1x.

Our capital allocation approach is unchanged. We prioritize reinvestment in the business, both organically and through selective M&A, while maintaining a healthy balance sheet and ample liquidity, then returning excess cash to shareholders via repurchases. In Q3, we bought back 63.9 million shares for $4.8B, our largest quarter ever of stock repurchases, and we currently have $22.3B of capacity left in our remaining authorizations. We ended Q3 with gross debt of $15.3B and cash and cash equivalents of $8.2B. Gross debt was ~$1B higher than the end of Q2, reflecting a $1B bond deal we completed during the quarter in order to fund our upcoming $1B debt maturity in Q4.

⁵ Defined as cash provided by (used in) operating activities less purchases of property and equipment.

Regional Revenue Breakdown (Q3 2026)

• United States & Canada (UCAN): $5,628 million (+11% YoY, +11% F/X neutral)
• Europe, Middle East & Africa (EMEA): $4,107 million (+11% YoY, +9% F/X neutral)
• Latin America (LATAM): $1,603 million (+17% YoY, +12% F/X neutral)
• Asia-Pacific (APAC): $1,537 million (+12% YoY, +15% F/X neutral)

Regional Breakdown

(in millions)	Q3'25	Q4'25	Q1'26	Q2'26	Q3'26
UCAN:
Revenue	$5,072	$5,339	$5,245	$5,432	$5,628
Y/Y % Growth	17%	18%	14%	10%	11%
F/X Neutral Y/Y % Growth	17%	18%	14%	10%	11%
EMEA:
Revenue	$3,699	$3,873	$3,998	$4,034	$4,107
Y/Y % Growth	18%	18%	17%	14%	11%
F/X Neutral Y/Y % Growth	15%	15%	12%	11%	9%
LATAM:
Revenue	$1,371	$1,418	$1,497	$1,584	$1,603
Y/Y % Growth	10%	15%	19%	21%	17%
F/X Neutral Y/Y % Growth	20%	20%	18%	16%	12%
APAC:
Revenue	$1,369	$1,421	$1,509	$1,510	$1,537
Y/Y % Growth	21%	17%	20%	16%	12%
F/X Neutral Y/Y % Growth	20%	19%	19%	18%	15%

F/X Neutral revenue growth excludes the year over year effect of foreign exchange rate movements and the impact of hedging gains/losses realized as revenues. Assumes foreign exchange rates remained constant with foreign exchange rates from each of the corresponding months of the prior-year period.

Consolidated Statements of Operations (unaudited, in thousands, except per share data)

	Three Months Ended			Nine Months Ended
	Sep 30, 2026	Jun 30, 2026	Sep 30, 2025	Sep 30, 2026	Sep 30, 2025
Revenues	$12,874,176	$12,559,938	$11,510,307	$37,683,871	$33,132,274
Cost of revenues	6,079,016	6,036,965	6,164,250	18,004,219	16,752,708
Sales and marketing	837,051	823,838	786,295	2,503,106	2,187,930
Technology and development	1,033,142	1,007,675	853,584	3,000,513	2,501,090
General and administrative	466,367	498,850	457,931	1,567,826	1,320,606
Operating income	4,458,600	4,192,610	3,248,247	12,608,207	10,369,940
Other income (expense):
Interest expense	(184,701)	(175,685)	(175,294)	(622,463)	(542,115)
Interest and other income (expense)	43,006	51,661	36,457	2,946,833	126,986
Income before income taxes	4,316,905	4,068,586	3,109,410	14,932,577	9,954,811
Provision for income taxes	(652,978)	(667,172)	(562,494)	(2,584,445)	(1,392,131)
Net income	$3,663,927	$3,401,414	$2,546,916	$12,348,132	$8,562,680
Earnings per share*:
Basic	$0.89	$0.81	$0.60	$2.95	$2.01
Diluted	$0.87	$0.80	$0.59	$2.90	$1.97
Weighted-average shares of common stock outstanding*:
Basic	4,134,463	4,189,303	4,244,553	4,181,861	4,256,350
Diluted	4,195,127	4,261,300	4,340,392	4,251,298	4,352,844

* Share and per share amounts have been retroactively adjusted to reflect the ten-for-one forward stock split which was effected on November 14, 2025.

Earnings Interview

Our live video interview will be on youtube/netflixir at 1:45pm PT today. Co-CEOs Greg Peters and Ted Sarandos, CFO Spence Neumann and VP of Finance & Capital Markets, Spencer Wang, will all be on the video to answer questions submitted by sellside analysts.

Reference

For quick reference, our past investor letters can be found here.

About Netflix

Netflix is one of the world's leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time.

Investor Relations Contact

Lowell Singer, VP, Investor Relations: 818 434-2141

Media Contact

Kelly Pakula, VP, Global Corporate Communications: 415 254-4462

Forward-Looking Statements

This shareholder letter contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our expected results for the fiscal quarter and fiscal year ending December 31, 2026; priorities for 2026; adoption and growth of streaming entertainment; growth strategy and outlook; market opportunity; competitive landscape and position; expectations regarding series, films, games, live programming and video podcasts and title performance; partnerships, licensing and third-party content; engagement and view hours; slate strength; pricing and plans strategy; ad-supported tier and its prospects, including new market launches; advertising, including our ad-tech platform; product strategy; impact of organizational changes, including headcount reductions; impact of foreign exchange rates and hedging activities; stock repurchases; advertising revenue; revenue and revenue growth; membership growth, retention and ARM growth; operating income, operating margin, net income, earnings per share, capital allocation, debt repayment, closing of a real estate transaction, free cash flow, content spend and content amortization. The forward-looking statements in this letter are subject to risks and uncertainties that could cause actual results and events to differ, including, without limitation: our ability to attract new members and engage and retain existing members; our ability to compete effectively, including for consumer engagement with different modes of entertainment; failing to improve the variety and quality of entertainment offerings; adoption of the ads plan and paid sharing; maintenance and expansion of device platforms for streaming; fluctuations in consumer usage of our service; service disruptions; production risks; macroeconomic conditions; content slate and timing of content releases. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K, filed with the SEC on January 23, 2026. The Company provides internal forecast numbers. Investors should anticipate that actual performance will vary from these forecast numbers based on risks and uncertainties discussed above and in our Annual Report on Form 10-K. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this shareholder letter.

Source: Netflix Q3 2026 Letter to Shareholders (PDF), ir.netflix.net.

Stock Titan analysis: Netflix Q3 2026 Earnings: Revenue in Line With Its Own Forecast

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Netflix's Q3 2026 revenue and earnings?

Netflix reported $12.87 billion in revenue and diluted earnings per share of $0.87 for the quarter ended September 30, 2026. Revenue increased 12% year over year, while diluted EPS compared with $0.59 a year earlier. Operating margin reached 34.6%.

Why did Netflix lower its 2026 advertising revenue and free cash flow forecasts?

Netflix lowered expected advertising revenue because of slower-than-expected rollout of some ad-product capabilities, and lowered expected free cash flow primarily because of a real estate transaction expected to close in Q4. Advertising revenue is now expected at approximately $2.7 billion, versus approximately $3 billion previously; free cash flow is expected at approximately $12.0 billion, versus $12.5 billion previously.

Which countries are included in Netflix's first advertising-tier expansion in March 2027?

Netflix plans its first March 2027 advertising-tier launches in nine EMEA countries, Colombia, Peru and New Zealand. New Zealand is an addition to the previously announced rollout. The full 2027 expansion is planned to cover 15 new countries.