Netflix Q3 2026 margin beats guidance as full-year ad revenue and free cash flow forecasts are trimmed

Netflix reported third-quarter 2026 results on October 20, with revenue of $12.87 billion, up 11.8%, in line with its July guidance of 12% growth. Its operating margin came in at 34.6%, above the 33.2% it had forecast, which the company attributed mainly to the timing of expenses rather than a lasting change. Management lowered its full-year advertising revenue outlook to about $2.7 billion from roughly $3 billion, citing a slower-than-expected rollout of some ad product capabilities. The company also reduced its 2026 free cash flow estimate to about $12.0 billion from $12.5 billion, due mainly to a real estate transaction expected to close in the fourth quarter, while full-year revenue and margin targets were largely unchanged. Netflix additionally repurchased 63.9 million shares for $4.8 billion in the quarter, its largest buyback quarter to date.