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Netflix
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Latest analysis
Updated Oct 21, 2026
Netflix Q3 2026: Revenue rises 12% YoY to $12.9B as operating margin expands 640bps to 34.6%, while WBD deal termination reshapes the M&A narrative
Netflix delivered Q3 2026 revenue of $12.87 billion, up 12% year-over-year, with operating income surging 37% to $4.46 billion and operating margin expanding 640 basis points to 34.6% — the clearest demonstration yet that the platform's cost structure is inflecting favorably at scale. The margin improvement was driven by a $85 million decline in cost of revenues (aided by the absence of a $619 million Brazil non-income tax charge from the prior year period) and revenue growth outpacing sales, marketing, and G&A spend, partially offset by technology and development expenses growing 21% as Netflix continues to invest in product and infrastructure. The Warner Bros. Discovery transaction termination — which delivered a $2.8 billion termination fee in Q1 2026 and resulted in approximately $85 million of debt issuance cost amortization — is the defining non-recurring event of the fiscal year-to-date period, and its resolution leaves Netflix with $22.3 billion remaining under its share repurchase authorization and a clean strategic slate.
Tone: bullishRevenue
$45.2B
NFLX 10-K · FY 2025
Employees
16,000
Revenue growth YoY
+16%
Founded
1997
Profile
NFLX 10-K Item 1 · Jan 23, 2026Netflix is a global streaming entertainment service offering TV series, films, games, and live programming across a wide variety of genres and languages. The company operates as a single segment and derives revenue primarily from monthly membership fees, supplemented by advertising on its ad-supported tier. Its core strategy is global membership growth within the parameters of an operating margin target.
Read filing description ↓ Collapse description ↑
Netflix, Inc. 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. Our core strategy is to grow our business globally within the parameters of our operating margin target. We strive to continuously improve our members' experience by offering compelling content that delights them and attracts new members. We aim to offer a range of pricing plans, including our ad-supported subscription plan, to meet a variety of consumer needs. We seek to drive conversation around our content to further enhance member joy, and we are continuously enhancing our user interface to help our members more easily choose content that they will find enjoyable. Our revenues are primarily derived from monthly membership fees for services related to streaming content to our members. We also earn revenue from advertisements presented on our streaming service, consumer products, live experiences and various other sources.
Primary products
- streaming subscription service
- ad-supported subscription plan
- games
- live programming
- consumer products
- live experiences
Business segments
End markets
Geographies
“We compete with a broad set of activities for consumers' leisure time, including other entertainment video providers, such as linear television, streaming entertainment providers (including those that provide pirated content), video gaming providers, open content platform providers, which provide access to user-generated and professionally produced content, as well as more broadly against other sources of entertainment, such as social media, that our members could choose in their moments of free time.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Total revenues increased 16% year-over-year, driven by membership growth, price increases, and increased advertising revenue, partially offset by unfavorable foreign exchange movements net of hedging.
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Analysis, signals, diligence answers, M&A activity and every quote, each citing the filing it came from.