Netflix filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $49.73 billion, which rose 14.7% on the year before. That growth rate was down 1.4 percentage points on the rate a quarter earlier.

Profitability

The trailing gross margin was 50.7%. The trailing operating margin was 31.3%, up 2.2 percentage points from a year earlier. The trailing net margin was 29.7%. Net income over the twelve months was $14.77 billion, which rose 41.6% on the year before.

Cash flow

Operating cash flow over the twelve months was $12.31 billion, up 28.5% on the year before. Capital spending was $932.9 million, or 1.9% of revenue. Free cash flow, operating cash flow less capital spending, was $11.38 billion, up 26.9% on the year before. Free cash flow was 22.9% of revenue (the free-cash-flow margin), up 2.2 percentage points from a year earlier.

Against its own history

Today’s free-cash-flow margin of 22.9% is higher than 97% of the company’s own past quarterly readings, which have ranged from −20.6% to 25.4%. Today’s operating margin of 31.3% is higher than 100% of the company’s own past quarterly readings, which have ranged from 1.4% to 29.7%. Today’s twelve-month revenue growth rate of 14.7% is higher than 18% of the company’s own past quarterly readings, which have ranged from 3.5% to 48.2%.

Guidance

The company lowered its full year 2026 guidance for revenue: $51.1 billion. The company gave its 2026 guidance for operating margin: 31.5%. The company lowered its 2026 guidance for ad revenue for advertising: $2.7 billion. The company gave its Q4 guidance for revenue: $13.4 billion.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 24.7%, and 5 percentage points higher would raise it by 31.8%. A free-cash-flow margin 1 percentage point lower would lower it by 4.2%.

What to watch

The next filing will reveal whether the recent decline in revenue growth rate continues or stabilizes relative to the previous quarter. It will also show if the expansion in operating and free-cash-flow margins persists as the company moves toward its full-year targets. Additionally, the report will provide updated details on the trajectory of advertising revenue against the lowered guidance.