Netflix's third-quarter net income rose 43.9% to $3.66B, including a $619 million expense related to non-income tax assessments in Brazil in the prior-year period, while revenue increased 11.8% to $12.87B.

Filed October 21, 2026 · Period ending September 30, 2026 · Compared to 10-Q Oct 22, 2025 · ~2 min read

Key Changes

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  Revenue rose 11.8% to $12.87B in the third quarter, which the company attributes to growth in subscription revenue of $1,057 million, which reflects increases in memberships and pricing, and an increase of $256 million in advertising revenue.

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  Operating margin expanded to 34.6% from 28.2% a year earlier, including a $619 million expense related to non-income tax assessments in Brazil in the prior-year period, driven by decrease in cost of revenues and revenue growth outpacing the growth in sales and marketing and general and administrative expenses, partially offset by technology and development expenses growing at a faster rate than revenues.

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  Net income for the quarter increased 43.9% to $3.66B, including a $619 million expense related to non-income tax assessments in Brazil in the prior-year period, primarily due to a $1,210 million increase in operating income, driven by a $1,364 million increase in revenues and an $85 million decrease in cost of revenues.

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