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Netflix
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Latest analysis
Updated Jul 17, 2026
Netflix Q2 2026: Revenue grows 13% YoY to $12.6 billion as advertising headcount investment compresses operating margin by 70 bps
Netflix delivered $12.56 billion in Q2 2026 revenue, up 13% year-over-year, driven by membership growth, price increases, and accelerating advertising revenue — with LATAM (+21%) and APAC (+16%) outpacing the consolidated rate. Operating margin contracted 70 basis points to 33.4% as technology, development, and sales and marketing expenses — particularly advertising sales headcount — grew faster than revenue. The dominant balance-sheet event of the half was the receipt of a $2.8 billion termination fee from the collapsed Warner Bros. Discovery transaction, which inflated H1 2026 operating cash flow and net income but obscures the underlying content-spend trajectory: content obligations stand at $25.1 billion, with $11.9 billion due in the next twelve months.
Tone: mixedRevenue
$45.2B
NFLX 10-K · FY 2025
Employees
16,000
Revenue growth YoY
+16%
Founded
1997
Profile
NFLX 10-K Item 1 · Jan 23, 2026Netflix is a global streaming entertainment service offering TV series, films, games, and live programming across a wide variety of genres and languages. The company operates as a single segment and derives revenue primarily from monthly membership fees, supplemented by advertising on its ad-supported tier. Its core strategy is global membership growth within the parameters of an operating margin target.
Read filing description ↓ Collapse description ↑
Netflix, Inc. is one of the world's leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. Our core strategy is to grow our business globally within the parameters of our operating margin target. We strive to continuously improve our members' experience by offering compelling content that delights them and attracts new members. We aim to offer a range of pricing plans, including our ad-supported subscription plan, to meet a variety of consumer needs. We seek to drive conversation around our content to further enhance member joy, and we are continuously enhancing our user interface to help our members more easily choose content that they will find enjoyable. Our revenues are primarily derived from monthly membership fees for services related to streaming content to our members. We also earn revenue from advertisements presented on our streaming service, consumer products, live experiences and various other sources.
Primary products
- streaming subscription service
- ad-supported subscription plan
- games
- live programming
- consumer products
- live experiences
Business segments
End markets
Geographies
“We compete with a broad set of activities for consumers' leisure time, including other entertainment video providers, such as linear television, streaming entertainment providers (including those that provide pirated content), video gaming providers, open content platform providers, which provide access to user-generated and professionally produced content, as well as more broadly against other sources of entertainment, such as social media, that our members could choose in their moments of free time.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Total revenues increased 16% year-over-year, driven by membership growth, price increases, and increased advertising revenue, partially offset by unfavorable foreign exchange movements net of hedging.
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