NFLX · 10-Q · 2026Q2 · Full report

Operating Income and Margins

NETFLIX INC · 2026-07-17 · Importance 54 · Surprise 40 · In source text

Second-quarter 2026 operating income increased $418 million, or 11%, to $4.193 billion from $3.775 billion in the second quarter of 2025. Second-quarter operating margin declined to 33.4% from 34.1%, while six-month operating margin declined to 32.8% from 32.9%. Management attributed the quarterly margin decline primarily to technology and development expenses and sales and marketing expenses growing faster than revenue. Six-month cost of revenues increased $1.337 billion to $11.925 billion, including an $874 million increase in content amortization tied to existing and new content.

Key facts

• Interest and other income (expense) for the six months ended June 30, 2026: $2,903,827 thousand, versus $90,529 thousand for the six months ended June 30, 2025. source
• Interest and other income (expense) for the six months ended June 30, 2026: $2,903,827 (in thousands), reflecting the $2.8 billion termination fee recorded in Q1 2026. source
• Operating income for the three months ended June 30, 2026: $4,192,610 (in thousands). source
• Net income for the three months ended June 30, 2026: $3,401,414 (in thousands). source
• Operating income for the three months ended June 30, 2026: $4,192,610 thousand. source
• Net income for the three months ended June 30, 2026: $3,401,414 thousand. source
• Basic earnings per share for the three months ended June 30, 2026: $0.81. source
• Diluted earnings per share for the three months ended June 30, 2026: $0.80. source

Impact estimates