Netflix Reports Q3 2026 Financial Results and Full-Year Outlook

Executive Overview

On October 20, 2026, Netflix, Inc. reported its financial results for the third quarter ended September 30, 2026, via Form 8-K under Item 2.02 (Results of Operations and Financial Condition).

Q3 2026 Financial Performance

• Revenue: Reached $12.874 billion, representing an 11.8% year-over-year growth (11% on a foreign-exchange neutral basis), driven primarily by subscription revenue gains from higher membership numbers and pricing adjustments, alongside expanding advertising revenue.
• Operating Profitability: Operating income rose 37% year-over-year to $4.459 billion, achieving an operating margin of 34.6% compared to 28.2% in Q3 2025. This exceeded internal company forecasts primarily due to the timing of operating expenses and minor revenue outperformance.
• Net Income and EPS: Diluted earnings per share reached $0.87, climbing 49% from $0.59 in Q3 2025, on net income of $3.664 billion.
• Cash Flow: Net cash provided by operating activities was $3.162 billion, generating free cash flow of $2.884 billion for the quarter.

Forward-Looking Guidance

• Q4 2026 Outlook:
  • Revenue projected at $13.442 billion (~12% YoY growth, 11% F/X neutral).
  • Operating margin projected at 26.0%, which incorporates an approximately 120 basis point negative impact from headcount restructuring.
  • Diluted EPS forecasted at $0.67.
• Full Year 2026 Outlook:
  • Projected annual revenue of $51.1 billion (+13% YoY).
  • Ad revenue expectations refined to ~$2.7 billion (from ~$3.0 billion previously) due to timing in ad-tech rollout.
  • Operating margin forecasted at 31.5% (up from 29.5% in FY 2025), factoring in approximately 30 basis points of headcount restructuring impact.