Netflix (NFLX) Q3 FY2026 earnings: revenue $12.9 billion, up 11.8% on the year

Netflix Inc. (NFLX) reported revenue of $12.9 billion for Q3 FY2026, the quarter ended 30 September 2026, up 11.8% on the same quarter a year earlier. Net income was $3.7 billion, up 43.9% on the year, and diluted earnings per share $0.87. The figures are the company's own, from the 10-Q it filed with the SEC on 21 October 2026.

Revenue$12.9 billionup 11.8%

Net income$3.7 billionup 43.9%

Diluted EPS$0.87

QuarterQ3 FY2026ended 30 September 2026

What management said

Guidance figures: 3 lowered, 2 new, 1 kept.

Q3 revenue grew 12 percent: Q3 revenue was $12.9B, up 12% year over year (11% F/X neutral), in line with forecast. Growth came mainly from subscription revenue, with memberships and pricing rising, plus advertising and favorable F/X.
Operating margin rose to 34.6%: Q3 operating income was $4.5B, up 37% year over year. Operating margin was 34.6% versus 28.2% in Q3 2025. Both were ahead of forecast, mainly from expense timing.
Full-year revenue just below prior midpoint: Full-year 2026 revenue is forecast at $51.1B, up 13%. Subscription revenue growth outperformed expectations, while ad revenue was lowered.

Read the earnings call summary

The quarter, against the one before and a year earlier

Line	Q3 FY2026	Q2 FY2026	Q3 FY2025	Change on the year
Revenue	12,874	12,560	11,510	+11.8%
Cost of revenue	6,079	6,037	6,164	-1.4%
Gross profit	6,795	6,523	5,346	+27.1%
Gross margin	52.8%	51.9%	46.4%
Research and development	1,033	1,008	854	+21.0%
Operating income	4,459	4,193	3,248	+37.3%
Operating margin	34.6%	33.4%	28.2%
Interest expense	185	176	175	+5.4%
Pre-tax income	4,317	4,069	3,109	+38.8%
Income tax	653	667	562	+16.1%
Effective tax rate	15.1%	16.4%	18.1%
Net income	3,664	3,401	2,547	+43.9%
Net margin	28.5%	27.1%	22.1%
Diluted EPS	$0.87	$0.80	$0.59	+48.2%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2026	Q2 FY2026	Q3 FY2025	Change on the year
Operating cash flow	3,162	1,744	2,825	+11.9%
Capital expenditure	279	219	165	+69.2%
Free cash flow	2,884	1,525	2,660	+8.4%
Free cash flow margin	22.4%	12.1%	23.1%
Cash from investing	-331	-219	43.9	n/a
Cash from financing	-3,755	-4,670	-1,737	n/a
Depreciation and amortisation	107	101	87.3	+22.6%
Share-based compensation	134	131	81.0	+65.1%
Buybacks	4,797	4,714	1,857	+158.3%
Diluted shares, weighted	4,195m	4,261m	4,340m	-3.3%
Shares outstanding at period end	4,106m	4,164m	4,237m	-3.1%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2026	Q2 FY2026	Q3 FY2025	Change on the year
Shareholders' equity	29,286	30,152	25,954	+12.8%
Short-term borrowings	n/a	n/a	0.0	n/a
Debt	15,132	14,309	14,463	+4.6%
Operating lease liabilities	1,817	1,899	2,163	-16.0%
Other liabilities	12,447	12,090	12,355	+0.7%
Total liabilities and equity	58,682	58,450	54,935	+6.8%
Fixed assets	2,561	2,399	1,838	+39.3%
Intangible assets	34,605	33,838	32,640	+6.0%
Investments	28.7	28.7	37.1	-22.7%
Cash and equivalents	8,194	9,099	9,287	-11.8%
Other assets	13,293	13,086	11,133	+19.4%
Total assets	58,682	58,450	54,935	+6.8%

Questions

What was Netflix's revenue in Q3 FY2026?

Netflix (NFLX) reported revenue of $12.9 billion for Q3 FY2026, the quarter ended 30 September 2026, up 11.8% on the same quarter a year earlier.

How much did Netflix earn in Q3 FY2026?

Net income for Q3 FY2026 was $3.7 billion, up 43.9% on the year, and diluted earnings per share $0.87.

When did Netflix report Q3 FY2026 results?

Netflix filed its 10-Q for the quarter ended 30 September 2026 with the SEC on 21 October 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	7,709	7,868	7,970	7,926	7,852	8,162	8,187	8,542	8,833	9,370	9,559	9,825	10,247	10,543	11,079	11,510	12,051	12,250	12,560	12,874
Cost of revenue	5,240	4,285	4,691	4,789	5,404	4,804	4,673	4,931	5,307	4,977	5,174	5,120	5,767	5,263	5,325	6,164	6,523	5,888	6,037	6,079
Gross profit	2,470	3,583	3,279	3,137	2,448	3,358	3,514	3,611	3,525	4,393	4,385	4,705	4,479	5,280	5,754	5,346	5,528	6,362	6,523	6,795
Gross margin	32%	46%	41%	40%	31%	41%	43%	42%	40%	47%	46%	48%	44%	50%	52%	46%	46%	52%	52%	53%
R&D	n/a	658	717	663	674	687	658	657	673	702	711	735	777	823	825	854	890	960	1,008	1,033
Operating income	632	1,972	1,578	1,533	550	1,714	1,827	1,916	1,496	2,633	2,603	2,909	2,273	3,347	3,775	3,248	2,957	3,957	4,193	4,459
Operating margin	8%	25%	20%	19%	7%	21%	22%	22%	17%	28%	27%	30%	22%	32%	34%	28%	25%	32%	33%	35%
Interest expense	189	188	175	173	171	174	175	176	175	173	168	185	193	184	183	175	234	262	176	185
Pre-tax income	551	1,980	1,623	1,622	39.3	1,469	1,679	1,909	1,148	2,615	2,514	2,703	2,134	3,214	3,632	3,109	2,768	6,547	4,069	4,317
Tax rate	-10%	19%	11%	14%	-41%	11%	11%	12%	18%	11%	15%	13%	12%	10%	14%	18%	13%	19%	16%	15%
Net income	607	1,597	1,441	1,398	55.3	1,305	1,488	1,677	938	2,332	2,147	2,364	1,869	2,890	3,125	2,547	2,419	5,283	3,401	3,664
Net margin	8%	20%	18%	18%	1%	16%	18%	20%	11%	25%	22%	24%	18%	27%	28%	22%	20%	43%	27%	28%
Diluted EPS	$0.13	$0.35	$0.32	$0.31	$0.01	$0.29	$0.33	$0.37	$0.21	$0.53	$0.49	$0.54	$0.43	$0.66	$0.72	$0.59	$0.56	$1.23	$0.80	$0.87
Operating cash flow	-403	923	103	557	444	2,179	1,440	1,992	1,663	2,213	1,291	2,321	1,537	2,789	2,423	2,825	2,112	5,290	1,744	3,162
Capital expenditure	166	121	90.0	85.0	112	62.0	101	104	81.6	75.7	78.3	127	159	128	156	165	239	196	219	279
Free cash flow	-569	802	12.7	472	332	2,117	1,339	1,888	1,581	2,137	1,213	2,194	1,378	2,661	2,267	2,660	1,872	5,094	1,525	2,884
Buybacks	n/a	0.0	0.0	0.0	0.0	400	645	2,500	2,500	2,000	1,600	1,700	964	3,536	1,654	1,857	2,080	1,271	4,714	4,797
Shares outstanding	4,440m	4,443m	4,447m	4,450m	4,453m	4,445m	4,431m	4,377m	4,328m	4,310m	4,292m	4,275m	4,278m	4,257m	4,249m	4,237m	4,222m	4,213m	4,164m	4,106m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2026, filed 21 October 2026: the filing.