Netflix Reports Q3 Earnings with Strong Revenue Growth, Updates Guidance
Netflix (NFLX) reported strong financial results for the third quarter of 2026, including $12.9 billion in revenue—a 12% year-over-year increase driven by subscription growth and pricing adjustments. The company exceeded internal forecasts on operating margin at 34.6%, with diluted EPS rising to $0.87 from $0.59 a year ago. Netflix updated its full-year guidance, projecting $51.1 billion in revenue for the fiscal year—a 13% increase—and revised down ad revenue targets due to slower-than-expected rollout of advertising products. The company also provided Q4 forecasts, including $13.4 billion in revenue and a projected operating margin of 26%. Organizational changes and headcount reductions are expected to impact margins negatively by up to 120 basis points during the quarter. Netflix highlighted strong regional growth across UCAN (up 11%), EMEA (9%), LATAM (12%), and APAC (15%) on a foreign exchange neutral basis, as well as significant advertising revenue growth of 80% for the year.
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Topics: Ad Revenue Target Adjustment EPS Increase Free Cash Flow Operating Income Revenue Growth