Netflix (NFLX) Q3 2026 Earnings
How Did NFLX Stock React to Q3 2026 Earnings?
Did NFLX Beat Earnings? Q3 2026 Results
Yes. Netflix reported Q3 2026 earnings of $0.87 a share on Oct 20, 2026, beating the $0.82 consensus estimate by 5.7%. Revenue was $12.9B against a $12.9B estimate.
Netflix delivered a quarter defined more by profit expansion than revenue fireworks, posting third-quarter 2026 GAAP earnings per share of $0.87, beating the $0.82 consensus by 5.72%, even as revenue of $12.87 billion came in fractionally light of the $12.88 billion Wall Street expected, a near-negligible miss of 0.03%. Revenue still grew 11.8% year over year, fueled by membership gains, pricing, and favorable foreign exchange rates, but the more striking figure was operating income, which climbed 37% to $4.46 billion as margin expanded to 34.6% from 28.2% a year ago, aided in part by the timing of expense recognition. The results arrive after a bruising stretch that wiped more than $135 billion from the company's market value, giving management something tangible to point to as it absorbs the cost of recent leadership reshuffles and roughly 1,000 job cuts. Looking ahead, Netflix guided for Q4 revenue of $13.44 billion and a full-year 2026 operating margin of 31.5%, though it trimmed its advertising revenue outlook to approximately $2.70 billion from $3.00 billion, citing a slower-than-expected rollout of ad product capabilities.
- Revenue growth driven by subscription revenue from membership increases and pricing
- Advertising revenue growth contribution
- Favorable F/X rates net of hedging
- Improved churn globally and in the US year-over-year
- Strong content slate driving engagement, including hits in India, Japan, Denmark, Mexico, and Netherlands
- Non-English viewing now more than a third of total viewing
- India view hours grew 24% YoY with largest quarter ever of paid net additions
What Is Netflix's Outlook?
Netflix expects Q4 2026 revenue of $13.4 billion (+12% YoY, +11% F/X neutral) and an operating margin of 26.0%, which includes ~120 basis points negative impact from headcount reductions. For full year 2026, the company projects revenue of $51.1B (+13% YoY, +12% F/X neutral) and an operating margin of 31.5%, implying 20%+ annual operating income growth. Full-year free cash flow is now expected to be approximately $12.0B (reduced from $12.5B due to a Q4 real estate transaction). Advertising revenue for 2026 is now expected at approximately $2.7B, down from the prior ~$3B estimate due to slower-than-expected rollout of ad product capabilities. The ad tier will expand to 15 new countries in 2027, with the first tranche launching in March 2027. Cash content spend to amortization ratio is expected at ~1.1x for the year.
NFLX YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $12.9B | $11.5B | +11.9% |
| Gross Profit | $6.8B | $5.3B | +27.1% |
| Operating Income | $4.5B | $3.2B | +37.3% |
| Net Income | $3.7B | $2.5B | +43.9% |
NFLX Revenue by Segment
NFLX Revenue by Geography
When Does Netflix Report Next?
Figures from SEC filings and company reports. Not investment advice.