NFLX · 10-Q · 2026Q3 · Full report

Operating Income and Margins

NETFLIX INC · 2026-10-21 · Importance 64 · Surprise 56 · Contradicted

Q3 2026 operating income increased $1.210 billion, or 37%, to $4.459 billion from $3.248 billion. Operating margin expanded to 34.6% from 28.2%, a 6.4-percentage-point improvement, because revenue growth and lower cost of revenues outpaced sales and marketing and general and administrative expense growth. Nine-month operating income increased to $12.608 billion from $10.370 billion, while operating margin expanded to 33.5% from 31.3%. Q3 net income increased $1.117 billion to $3.664 billion, primarily because of the operating-income increase, partly offset by a $90 million increase in income-tax expense.

Key facts

• For the three months ended September 30, 2026, NETFLIX INC reported net income of $3,663,927 thousand and provision for income taxes of $652,978 thousand. source
• For the nine months ended September 30, 2026, NETFLIX INC reported net income of $12,348,132 thousand and provision for income taxes of $2,584,445 thousand. source
• Operating income for the three months ended September 30, 2026: $4,458,600 (in thousands). source
• Net income for the three months ended September 30, 2026: $3,663,927 (in thousands). source
• For the three months ended September 30, 2026, NETFLIX INC reported operating income of $4,458,600 thousand and an operating margin of 34.6%. source
• For the nine months ended September 30, 2026, NETFLIX INC reported operating income of $12,608,207 thousand and an operating margin of 33.5%. source
• Interest and other income (expense) for the three months ended September 30, 2026: $43,006 (in thousands). source
• Basic earnings per share for the three months ended September 30, 2026: $0.89. source

Impact estimates