21 October 2026
If you are covering Netflix's latest results, please see the following comment from Ben Barringer, head of technology research at Quilter Cheviot:
“These were slightly lacklustre numbers from Netflix, with the shares falling despite revenue growing 12% year on year. There were positives underneath the headline, not least the 34.6% operating margin, which came in ahead of Netflix’s own expectations, but there were no real fireworks in the quarter.
“The key is that Netflix is sticking with its strategy with its own films and series remain at the core of what it does, alongside selected live events and licensed content.
“Churn remains good and there are still significant opportunities for growth in markets such as India and other emerging economies. But overall growth is naturally becoming more modest as Netflix matures, and improving engagement will become increasingly important from here.
“There is plenty coming through the content slate to help on that front, including Emily in Paris and East of Eden, while the Fury versus Joshua fight shows how selected live events can complement Netflix’s traditional offering and potentially bring a different audience onto the platform. The arrival of Peter Rice from Disney and Fox is another interesting development, although it will take some time before we can judge the impact he has on Netflix’s content strategy.
“Netflix is still the leader in streaming, but the competitive landscape for people’s attention is much broader than streaming alone, particularly with the growth of short-form video. Netflix needs to make sure its content is good enough to keep people watching rather than simply maintaining their subscription.
“It also remains reasonably priced for what consumers are getting. On a cost-per-hour basis, there is a huge amount of entertainment available for the monthly subscription, and that continues to make Netflix an attractive proposition even as the streaming market matures.
“The roughly $5 billion spent buying back shares during the quarter is another sign of the cash the business is now generating. We will get 2027 guidance next quarter, which should give investors a clearer idea of what the next stage of growth looks like. For now, Netflix remains the leader and the strategy is working, but these results were steady rather than spectacular.”
