# Netflix Stock Q3 2026: Margin 34.6%, Ad Outlook Trimmed
> Netflix stock Q3 2026: revenue up 12% to $12.9bn, a 34.6% operating margin, EPS of $0.87, a $4.8bn buyback and a lower 2026 ad revenue outlook.

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## Facts
- Ticker: NFLX
- QSILabs fair value: $69.49 USD
- Price: $62.08 (as of 2026-10-30)
- As of: Q3 2026 results (quarter ended 2026-09-30); price as of 2026-10-30 close
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/netflix-stock-q3-2026-earnings-ads-buybacks/

## Short answer
Netflix stock Q3 2026 results, for the July to September quarter, showed a business that is still growing at double digits and earning more on every dollar, but not quite as fast as investors had hoped. Revenue rose 12% to $12.87bn, operating income rose 37% to $4.46bn, a 34.6% margin, and diluted earnings per share rose to $0.87 from $0.59. Netflix kept its 2026 forecast of $51.1bn of revenue and a 31.5% operating margin, but cut its 2026 ad revenue forecast to about $2.7bn from about $3bn and its free cash flow forecast to about $12.0bn from $12.5bn. Our discounted cash flow model puts Netflix at $69.49 per share, about 12% above the $62.08 close on 30 October 2026. After a fall of about 44% in a year, the shares price in slower growth than the company is delivering.

## Key takeaways
- Valuation: QSILabs values Netflix (Nasdaq: NFLX) at $69.49 per share as of results for the quarter ended 30 September 2026, against a $62.08 close on 30 October 2026, about 12% above the market price. Our sensitivity range is about $59-85 a share.
- Q3 2026 results: revenue was $12,874m in the quarter ended 30 September 2026, up 11.8% from $11,510m (11% excluding currency moves); operating income was $4,459m, up 37%, a 34.6% margin against 28.2%; net income was $3,664m and diluted EPS $0.87, against $0.59.
- Regions: revenue grew 11% in the US and Canada, 11% in Europe, the Middle East and Africa, 17% in Latin America and 12% in Asia-Pacific. In India view hours rose 24% and revenue about 18% excluding currency moves.
- Guidance: for the fourth quarter Netflix expects revenue of $13.44bn, up about 12%, and a 26.0% operating margin, including about 1.2 percentage points of costs for job cuts. For 2026 it expects revenue of $51.1bn, up 13%, and a 31.5% margin against 29.5% in 2025, with ad revenue of about $2.7bn.
- Cash and returns: free cash flow was $2.88bn in the quarter and $9.50bn in the first nine months; Netflix bought back 130.3m shares for $10.7bn in the nine months and had $22.3bn of authorization left. Gross debt was $15.3bn and cash $8.2bn at 30 September.
- What comes next: Netflix will give 2027 guidance in January. Its stated aims are unchanged: double-digit revenue growth, wider margins and more free cash flow. The ad tier launches in 15 more countries in 2027, starting in March.

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