NFLX · 10-Q · 2026Q3 · Full report

FX / Currency Impact

NETFLIX INC · 2026-10-21 · Importance 49 · Surprise 6 · No source text

Netflix uses foreign-exchange derivatives to reduce earnings and cash-flow volatility from currency fluctuations in its ongoing operations. At September 30, 2026, the company had $22.7 billion of foreign-exchange cash-flow hedges, $2.9 billion of foreign-exchange fair-value hedges, and $1.6 billion of non-designated foreign-exchange contracts. Approximately $1.8 billion of Euro-denominated senior notes hedged the foreign-exchange risk of net investments in certain foreign subsidiaries. The company recognized $180.9 million of foreign-exchange cash-flow hedge losses reclassified from accumulated other comprehensive income during the nine months ended September 30, 2026, compared with $2.0 million in the prior-year period.

Key facts

• As of September 30, 2026, approximately $1.8 billion of the Company’s Euro-denominated Senior Notes were designated as hedges of the foreign exchange risk of the Company’s net investment in certain foreign subsidiaries. source
• As of September 30, 2026, derivatives designated as hedging instruments had total notional amounts: foreign exchange contracts cash flow hedges $22,719,064 and fair value hedges $2,926,246, and interest rate contracts fair value hedges $2,400,000; total derivatives notional amount was $29,601,466 (in thousands). source
• A portion of the outstanding Notes is denominated in foreign currency comprised of €4,700 million and is remeasured into U.S. dollars at each balance sheet date. source
• As of September 30, 2026, the carrying amount of the Company’s Euro-denominated Senior Notes designated as hedged items in fair value hedges was approximately $2.8 billion. source
• Fair value of derivatives as of September 30, 2026: total derivative assets $420,331 and total derivative liabilities $261,029 (in thousands). source
• For the nine months ended September 30, 2026, NETFLIX INC's constant currency adjustment was $(686,989) thousand and hedging (gains) losses included in revenues were $180,860 thousand, resulting in constant currency revenues of $37,177,742 thousand. source
• For the three months ended September 30, 2026, NETFLIX INC's constant currency revenue adjustments totaled $27,710 thousand and hedging (gains) losses included in revenues totaled $ (blank) leading to constant currency revenues of $12,902,599 thousand and prior period less hedging $11,639,672 thousand (const. currency change not shown numerically). source

Impact estimates