Netflix (NFLX) earnings report card
The latest results graded A to F: sales, earnings per share and profit margin against what analysts expected and against a year ago, with a plain-English take.
A weak quarter: operating margin widened 6.4 points: it's keeping more of each dollar of sales, but sales missed forecasts by 2.0%.
- Operating margin widened 6.4 points: it's keeping more of each dollar of sales.
- Sales missed forecasts by 2.0%.
| Actual | Expected | Difference | |
|---|---|---|---|
| Revenue | $12.87bn | $13.13bn | ▼ −2.0% miss |
| Earnings per share | $0.87 | $0.84 | ▲ +4% beat |
| Net profit margin | 29.4% | 27.8% | ▲ +1.6 pts |
| The quarter in detail | This quarter | A year ago | Change |
|---|---|---|---|
| Gross margin | 52.8% | 46.4% | ▲ +6.3 pts |
| Operating margin | 34.6% | 28.2% | ▲ +6.4 pts |
| Net margin | 28.5% | 22.1% | ▲ +6.3 pts |
| Revenue vs the quarter before | $12.87bn | $12.56bn (quarter before) | ▲ +2.5% |
How the grade is worked out
| Revenue vs forecast | 2.2 / 20 | −2.0%: +2.5% or more scores full marks, −2.5% or worse scores nothing |
|---|---|---|
| EPS vs forecast | 11.8 / 20 | +4%: +20% or more scores full marks, −20% or worse scores nothing |
| Margin vs forecast | 11.5 / 15 | +1.6 pts: 3 points or more above forecast scores full marks |
Score = points ÷ points available × 100, using whatever figures are known. A from 80, B from 65, C from 50, D from 35, F below; + and − mark the top and bottom of each band. The share price reaction is shown but doesn't count towards the grade.
Expected = analysts' average forecast before the results. Net margin vs forecast uses earnings per share × diluted shares; the quarter in detail uses the company's SEC filing once it's out. A grade of what was reported, not a recommendation.
Reported 20 Oct 2026 · Sources: Finnhub (results and analyst forecasts), SEC EDGAR (company filings)
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