Netflix reported a 12% year-on-year rise in revenue for Q3 2026, powered mainly by subscriptions, higher memberships, pricing, advertising growth and favourable foreign exchange. Operating income climbed 37% to $4.5 billion, with operating margin widening to 34.6% from 28.2% a year earlier. Diluted earnings per share rose 49% to $0.87. Both profit measures beat the company’s forecast, helped by expense timing and slightly higher revenue.
Advertising, however, remains a small part of the business. Netflix cut its full-year ad revenue guidance from $3 billion to $2.7 billion, citing softer growth than expected. With total 2026 revenue projected at $51.1 billion, advertising makes up less than 6% of the total. To build the segment, the company is expanding Netflix Ads Suite through programmatic access, new partnerships with MercadoLibre and Adform, and stronger measurement tools. Its ad-supported tier will reach 15 more countries in 2027, starting in March.
India was the standout market. View hours rose 24% year on year, and revenue grew about 18% on a foreign-exchange-neutral basis. Lock Upp, Netflix’s first daily reality series, became its most-watched title in India so far, while Musafir Café and Operation Safed Sagar drew 9 million and 11 million views. A loyalty bundle with Flipkart helped deliver Netflix’s largest-ever quarter of paid net additions in India.
Netflix expects Q4 revenue of $13.4 billion, up 12%, with a 26% operating margin, including a 120-basis-point hit from headcount reductions. CFO Spencer Neumann said Netflix wants viewing to grow faster and is not satisfied with the pace.
