Netflix reports Q3 2026 results

Item 2.02 Results of Operations and Financial Condition.

On October 20, 2026, Netflix, Inc. (the "Company") announced its financial results for the quarter ended September 30, 2026.^{1 1}The Letter to Shareholders, which is attached hereto as Exhibit 99.1¹ and is incorporated herein by reference, includes reference to the non-GAAP financial information.^{2 2}A reconciliation to the GAAP equivalent of non-GAAP measures is contained in tabular form in Exhibit 99.1.² We are not able to reconcile forward-looking non-GAAP financial measures because we are unable to predict without unreasonable effort the exact amount or timing of the reconciling items, including property and equipment, and the impact of changes in currency exchange rates. The variability of these items could have a significant impact on our future GAAP financial results.

The information contained in this Item 2.02 and the accompanying Exhibit 99.1 are "furnished" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934³, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number Description of Exhibit

99.1⁹

Letter to Shareholders dated October 20, 2026⁹

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NETFLIX, INC.

Date: October 20, 2026

/s/ Spencer Neumann⁹

Spencer Neumann⁹

Chief Financial Officer⁹

October 20, 2026

Fellow shareholders,

• We delivered our Q3 forecast and expect to deliver on our full year 2026 guidance.

◦ Q3 revenue grew 12% year over year (11% on a F/X neutral basis 1 ) to $12.9B⁴, consistent with our forecast. Operating margin was 34.6%, up from 28.2% in Q3'25⁵ and ahead of our forecast primarily due to the timing of expenses.

◦ For 2026, we expect revenue of $51.1B (+13% year over year) and an operating margin of 31.5%.⁷

• The core of our service is delivering differentiated, exclusive, professionally produced series, films and live events. Q3 highlights include The Last House , Facing El Chapo , Death of the Pastor's Wife , our NFL Game from Melbourne, and a very successful slate in India.

• We'll continue to expand our entertainment offering through licensing and new ways to bring more third-party content to our service, like our TF1 partnership in France. Our audience, which is approaching one billion people, and our best-in-class product capabilities, make us great partners for studios, networks and creative talent.

• Member response to our 2026 price changes is consistent with prior adjustments and our expectations, an indicator that our engagement - which encompasses quantity, quality and variety of viewing - remains healthy and that we continue to deliver strong value to members.

• We'll close out 2026 with an exciting slate including The Further Mis-Adventures of Cliff Booth , limited series The Murder of JonBenét Ramsey , starring Melissa McCarthy and Clive Owen, new seasons of The Diplomat , Nobody Wants This and Lupin , the series finale of Emily in Paris , three NFL games on Thanksgiving Eve and Christmas Day, and the Tyson Fury vs. Anthony Joshua fight.

Our summary results, and forecast for Q4, are below.

__________________________________

1 Excluding the year over year effect of foreign exchange rate movements and the impact of hedging gains/losses realized as revenues. Assumes foreign exchange rates remained constant with foreign exchange rates from each of the corresponding months of the prior-year period.

1

Q3 Results and Forecast

Revenue in Q3 grew 12% year over year (+11% on a foreign exchange (F/X) neutral basis), and was in-line with our forecast. In Q3, revenue growth was driven primarily by subscription revenue, reflecting increases in memberships and pricing, growth in advertising revenue and a favorable impact from F/X rates, net of hedging. Membership growth benefited from continued, healthy retention in every region; globally and in the US, churn improved year-over-year and was better than forecast.

Q3'26 operating income totaled $4.5B (+37% year over year) and operating margin of 34.6% was up versus 28.2% in Q3'25. Both Q3 operating income and margin were ahead of forecast due primarily to the timing of expenses and the slight upside in revenue. As a result, diluted EPS for the quarter amounted to $0.87 vs. $0.59 in Q3'25 (+49% year over year).

As a reminder, the guidance we provide is our actual internal forecast at the time we report and we strive for accuracy. Our primary financial metrics are revenue for growth and operating margin for profitability. Our goal is to sustain healthy revenue growth, expand operating profit and margin, and deliver growing free cash flow.

In Q4, we expect revenue of $13.4 billion, which represents year over year growth of 12% (or 11% F/X neutral) driven by growth in memberships, pricing, and ad revenue. We project a Q4 operating margin of 26.0% which includes ~120 basis points negative impact associated with our recently announced headcount reductions, and compares with 24.5% in the year ago quarter. These organizational changes enable us to continue to aggressively invest in high impact areas to improve our service, and drive growth and innovation.

Our guidance for Q4 means that for the full year 2026 we expect revenue of $51.1B, or growth of 13% (+12% on a F/X neutral basis). This is 0.2% below the mid-point of our prior 2026 revenue forecast range - while subscription revenue growth has outperformed our expectations, we currently expect 2026 ad revenue of ~$2.7B vs. approximately $3B previously⁸ (due to slightly slower than expected rollout of some ad product capabilities). We anticipate an operating margin of 31.5% for 2026 (31.4% based on F/X rates as of January 1, 2026) vs. 29.5% in 2025. Our updated 2026 margin guidance includes ~30 basis points negative impact associated with our Q4 headcount reductions. Our forecast implies annual operating income growth of 20%+ for 2026.

Our Focus

Our mission is to entertain the world while building a wildly successful business. Our strategy is simple: invest in differentiated, exclusive, professionally-produced entertainment like Netflix originals that spark conversation, bring in more members, and make us