Full story: https://grafa.com/en/news/united-states/netflix-q3-2026-revenue-12-87-billion-ad-guidance
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Netflix reported third-quarter 2026 revenue of $12.87 billion, up 11.8% year over year, while net income increased approximately 44% to $3.66 billion.
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Operating income rose 37% to $4.46 billion, with operating margin expanding to 34.6% from 28.2%, exceeding management's forecast partly because of expense timing.
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Netflix expects annual revenue of $51.1 billion but reduced its advertising revenue forecast to $2.7 billion and free cash flow outlook to approximately $12 billion.
Netflix (NASDAQ:NFLX) reported third-quarter 2026 revenue of $12.87 billion, up 11.8% year over year, supported by subscription pricing, membership growth and advertising.
Operating income increased 37% to $4.46 billion, while operating margin widened to 34.6% from 28.2%, exceeding the company's forecast.
Netflix attributed the stronger-than-expected operating margin partly to expense timing, while acknowledging that some advertising product capabilities were rolling out more slowly than anticipated.
Net income rose to $3.66 billion from $2.55 billion, while diluted earnings increased to $0.87 per share from $0.59.
Netflix expects full-year revenue of $51.1 billion and an operating margin of 31.5%, while lowering projected advertising revenue to approximately $2.7 billion.
The company reduced its annual free cash flow forecast to approximately $12 billion from $12.5 billion, primarily reflecting a planned fourth-quarter real estate transaction.
Netflix repurchased $4.8 billion of shares during the quarter and ended September with $8.2 billion in cash, as workforce reductions added near-term costs.
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