Netflix posts double-digit revenue growth as Q3 sales reach $12.87 billion

• 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.
• 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.
• 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.