NFLX · 10-Q · 2026Q3 · Full report
Income Tax Rate Changes
NETFLIX INC · 2026-10-21 · Importance 63 · Surprise 64 · Matches filing data
Q3 2026 income-tax provision increased $90 million to $653 million from $562 million, while the effective tax rate decreased primarily because of higher U.S. federal research-and-development tax-credit benefits. Nine-month tax provision increased $1.192 billion to $2.584 billion from $1.392 billion. The nine-month effective tax rate increased primarily because excess tax benefits from stock-based compensation declined and the foreign-derived income deduction was lower relative to income growth. The nine-month tax provision was also affected by the $2.8 billion WBD termination fee included in pretax income.
Key facts
- Provision for income taxes for the three months ended September 30, 2026: $(652,978) (in thousands). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -5.1% | Provision for income taxes for the three months ended September 30, 2026: $(652,978) (in thousands). |