---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/dolphin/post/44445274.md"
description: "Netflix 3Q26 First Take: Q3 underwhelmed overall. Earnings slightly beat, but the quality was low given a modest bar and some timing mismatches between revenue and opex. More importantly, the Q4 guide missed even ex severance, so this print is unlikely to lift near-term sentiment.In detail. Highlights below. 1) Q3 revenue rose 12%, or 11% on an FXN basis, with growth continuing to slow. The high base played a role, but a softer Q3 content slate and ad growth below plan also weighed.2) Q3 OP was 6.8bn with OPM at 53%, up nearly 700bps YoY. This was not underlying strength, as last year’s base was depressed by a one-off Brazil tax, and Q3 saw some timing benefits in operating expenses.3) Guide missed: Q4 revenue is guided to 13.4bn, implying similar growth to Q3. OP of 3.5bn is 6% below consensus, mainly due to severance (layoffs announced on Oct. 14: 1,000+ employees, ~6%); even adding back the sub-0.2bn cost, profit still trails the Street.4) Notably, the company now expects FY ad revenue of 2.7bn, below the previously confident 3.0bn guide. Ads are a key pillar for growth expectations and valuation, which will likely further cap risk appetite.5) FY FCF was cut by 0.5bn to 12.0bn, mainly due to a Q4 real-estate transaction. Q3 buybacks were 4.8bn, well above historical levels, with 22.3bn remaining under authorization; if Q4 runs at a similar pace, FY26 shareholder yield would be approx. 5%. $Netflix(NFLX.US)"
datetime: "2026-10-20T23:31:12.000Z"
locales:
  - [en](https://longbridge.com/en/dolphin/post/44445274.md)
  - [zh-CN](https://longbridge.com/zh-CN/dolphin/post/44445274.md)
  - [zh-HK](https://longbridge.com/zh-HK/dolphin/post/44445274.md)
author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)"
generator: "portal-rs"
---

# Netflix 3Q26 First Take: Q3 underwhelmed overall. …


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**