Netflix (NFLX) Stock Analysis

Communication ServicesServices-Video Tape Rental

Summary Fair Value Intrinsic Value Metrics Investors Income Statements Balance Sheets Cash Flow Quarter Comparator Info

Q3 2026 · +11.8% revenue · +2.5% revenue

Beat the trendvs trailing 3-quarter avg

Revenue▼−3.9 ppvs trend

Net income▲+3.5 ppvs trend

Diluted EPS▲+138.7 ppvs trend

Free cash flow▼−23.1 ppvs trend

Outperformed in 2 of 4 metrics

How the cash was deployedQ3 2026

Operating cash flow$3.16B

$278.77M (8.8 %)

Share buybacks$4.80B (151.7 %)

Returned to shareholders this quarter$4.80B▲ +158%

Last 8 quarters of revenueLatest quarter highlighted. Q4 reconstructed from the annual filing.

+11.8% +2.5%

10.25B

Q4 24^*

10.54B

Q1 25

11.08B

Q2 25

11.51B

Q3 25

12.05B

Q4 25^*

12.25B

Q1 26

12.56B

Q2 26

12.87B

Q3 26

* Q4 is reconstructed from the annual filing (FY − Q1 − Q2 − Q3), since the SEC does not require a Q4 10-Q.

RevenueSteady

$12.87B

▲+11.8% ▲+2.5%

9.56B

9.82B

10.25B

10.54B

11.08B

11.51B

12.05B

12.25B

12.56B

12.87B

Holding the same pace as the prior quarter.

Net incomeReversal

$3.66B

▲+43.9% ▲+7.7%

2.15B

2.36B

1.87B

2.89B

3.13B

2.55B

2.42B

5.28B

3.40B

3.66B

Direction flipped this quarter — watch for a one-off or a new trend.

Free cash flowReversal

$2.88B

▲+8.4% ▲+89.1%

1.21B

2.19B

1.38B

2.66B

2.27B

2.66B

1.87B

5.09B

1.53B

2.88B

Direction flipped this quarter — watch for a one-off or a new trend.

Diluted Reversal

$0.87

▼−85.2% ▲+8.7%

4.88

5.40

4.27

6.61

7.19

5.87

-17.14

1.23

0.80

0.87

Direction flipped this quarter — watch for a one-off or a new trend.

Margins

Gross marginAccelerating

52.8 %

▲+6.3 pp ▲+0.8 pp

45.87

47.89

43.71

50.08

51.93

46.45

45.87

51.93

52.78

Moving faster than the prior quarter — the trend is picking up speed.

Operating marginAccelerating

34.6 %

▲+6.4 pp ▲+1.3 pp

27.23

29.61

22.18

31.75

34.07

28.22

24.54

32.30

33.38

34.63

Moving faster than the prior quarter — the trend is picking up speed.

Net marginReversal

28.5 %

▲+6.3 pp ▲+1.4 pp

22.46

24.06

18.24

27.42

28.21

22.13

20.07

43.13

27.08

28.46

Direction flipped this quarter — watch for a one-off or a new trend.

Metric	Q3 2025Same quarter, prior year	Q2 2026Previous quarter	Q3 2026Latest quarter	YoY	QoQ
Revenue	$11.51B	$12.56B	$12.87B	+11.8%	+2.5%
Cost of revenue	$6.16B	$6.04B	$6.08B	−1.4%	+0.7%
Gross profit	$5.35B	$6.52B	$6.80B	+27.1%	+4.2%
Operating expenses	—	—	—	—	—
Operating income	$3.25B	$4.19B	$4.46B	+37.3%	+6.3%
Net income	$2.55B	$3.40B	$3.66B	+43.9%	+7.7%
Diluted	$5.87	$0.80	$0.87	−85.2%	+8.7%
Operating cash flow	$2.83B	$1.74B	$3.16B	+11.9%	+81.3%
	$164.72M	$218.64M	$278.77M	+69.2%	+27.5%
Free cash flow	$2.66B	$1.53B	$2.88B	+8.4%	+89.1%
Gross margin	46.4 %	51.9 %	52.8 %	+6.3 pp	+0.8 pp
Operating margin	28.2 %	33.4 %	34.6 %	+6.4 pp	+1.3 pp
Net margin	22.1 %	27.1 %	28.5 %	+6.3 pp	+1.4 pp