The Walt Disney Company (DIS)
Similar size · 0.75x market cap
Streaming entertainment. Streaming is one segment alongside parks, studios and linear television.
YouTube · Q2 FY2026 · 2026-07-02
NFLX · NasdaqGS
Netflix
Entertainment · United States
USD 62.340.4% daily changeQuote 2026-11-02 · USD
- Market cap (USD)
- US$259.58B
- Trailing P/E
- 17.91x
- Forward P/E
- 16.53x
- Quarterly revenue growth
- 11.8%
- Trailing net margin
- 29.7%
- Indicated dividend yield
- —
Snapshot 2026-11-03 · Latest financial period 2026-09-30 · Yahoo Finance. Quotes may be delayed; reporting periods can differ.
Next earnings: 2027-01-19 (provider estimate; issuer confirmation unavailable here).
Company background
Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.
Company websiteQ3 2026
Go beyond the headline.
NFLX Stock: Profit Jumped — What Will Repeat? | Q3 2026
Published 2026-10-21
Q3 2026 REPORT HIGHLIGHTS
What’s changed for NFLX
Netflix grew profit strongly, but expense timing, a Brazil tax comparison and merger cash complicate the headline. We test recurring cash against the share price.
Profit growth needs a cleaner comparison.
Operating income rose 37.3%, but last year included a $619M Brazil charge. Against that adjusted base, growth is15.3%; this year also benefited from expense timing.
The advertising forecast fell.
Expected2026 advertising revenue is now $2.7B versus roughly $3.0B, reflecting slower product rollouts. Subscription revenue performed better than expected.
Cash guidance contains a large one-off.
Annual FCF guidance fell to $12B and includes a $2.8B merger termination receipt. Subtracting the gross receipt yields $9.2B, not a tax-adjusted recurring forecast.
Buybacks ran ahead of quarterly cash.
Netflix repurchased $4.80B of stock against $2.88B FCF. Gross debt rose with a refinancing ahead of a $1B Q4 maturity.
Our prior BUY changes to SELL.
The old $90 estimate remains in the historical record. A stricter recurring-cash model now supports $55; the change is a valuation reassessment, not a claim that this quarter alone destroyed $35 per share.
Comparable businesses
NFLX peer comparison
Same business group first, then company size. Preferred market cap: 0.5–2x; extended range: one-third–3x. Outside that range, industry benchmarks are labeled separately and excluded from peer medians.
| Metric | NFLXNetflix, Inc.Snapshot 2026-11-03Financial period: 2026-09-30 | DISThe Walt Disney CompanySnapshot 2026-11-03Financial period: 2026-06-27 | ROKURoku, Inc.Snapshot 2026-11-03Financial period: 2026-06-30 |
|---|---|---|---|
| Market capMarket value, converted to USD | US$259.58B | US$195.31B | US$23.10B |
| Forward P/EProvider forward earnings estimate | 16.53x | 15.08x | 39.15x |
| EV / EBITDAEnterprise value / trailing EBITDA | 16.63x | 11.59x | 36.27x |
| Revenue growthLatest quarter vs prior-year quarter | 11.8% | 6.8% | 21.9% |
| Operating marginLatest reported quarter | 34.6% | 19.3% | 12.2% |
| Free cash flow yieldTrailing cash flow / market cap | 9.8% | 2.5% | 3.6% |
| Net debt / EBITDANet debt / trailing EBITDA | 0.58x | 1.95x | -3.60x |
| Debt / equityTotal debt / positive book equity | 0.60x | 0.39x | 0.17x |
| Trailing P/ETrailing twelve-month earnings | 17.91x | 22.90x | 65.90x |
| Price / bookPrice / positive book equity per share | 8.74x | 1.78x | 8.17x |
| EV / salesEnterprise value / trailing revenue | 5.33x | 2.46x | 4.03x |
| Earnings growthLatest quarter vs prior-year quarter | 47.5% | -48.3% | 1,442.9% |
| Gross marginTrailing twelve months | 50.7% | 37.6% | 45.5% |
| Net marginTrailing twelve months | 29.7% | 8.7% | 6.8% |
| Return on equityProvider trailing return; positive equity only | 53.5% | 8.0% | 13.1% |
| Free cash flow marginTrailing free cash flow / revenue | 51.2% | 4.9% | 16.1% |
| Dividend yieldIndicated annual dividend / price | — | 1.3% | — |
| Earnings payoutProvider trailing dividend payout | 0.0% | 30.9% | 0.0% |
| Current ratioCurrent assets / current liabilities | 1.07x | 0.71x | 2.87x |
| BetaProvider historical market sensitivity | 1.61 | 1.43 | 2.09 |
YouTube · Q2 FY2026 · 2026-07-02
YouTube · Q1 2026 · 2026-05-01
Comparison methodology & limitations
Reviewed operating groups override broad sector classifications. Other companies are matched only within a sufficiently specific provider industry. Business mix, geography and accounting standards can still differ. Market caps are converted to USD using exchange rates captured during the snapshot refresh. Financial ratios that would mix currencies are omitted. Snapshots must be at most 14 days old and no more than seven days apart for automatic selection.
Peer medians require at least two valid similar-size peers for each metric. Negative earnings, nonpositive equity, missing data and irrelevant bank ratios are not presented as attractive valuations. A higher or lower number is not automatically a better investment. Financial statement periods are not calendar-aligned across companies.
Reported performance
Financial trends
Periods are grouped by their ending calendar year or quarter, not identical fiscal calendars. Exact period-end dates appear in tooltips and reported figures. When reporting currencies differ and a recent captured FX rate is available, money and EPS are normalized to USD for comparison. This is not a historical FX restatement. Gaps are not estimated.
Financial statements load separately from the research page.
Source: . Window ends at the latest available reporting period.
Revenue
Reported figures
Financial data & calculation notes
Standalone charts use the stated reporting currency. When a chart comparison spans currencies, money and EPS can be normalized to USD using a recent captured FX snapshot; this is for comparison only, not a historical FX restatement. Stock-based compensation is noncash. Free cash flow is operating cash flow less capital spending, which may include capitalized software. Missing metrics are not estimated or assumed to be zero. Banking and insurance ratios require industry-specific interpretation. Latest restatements may differ from figures in older episodes.
Market context
Valuation & price history
Adjusted closing price
Price history loads separately.
Price figures
Earnings-multiple scenario
Illustrative price = your earnings-per-share assumption × your P/E assumption. This is not a price target or a complete valuation model.
Starting assumptions, when available, use provider forward estimates as of 2026-11-03. Negative earnings require a different valuation method. This calculation omits balance-sheet, dilution and execution risks.
THE RESEARCH RECORD
Research history for NFLX
Q3 20262026-10-21
FREE RESEARCH PACKET · Q3 2026
NFLX: Profit Jumped. What Will Repeat?
Netflix grew profit strongly, but expense timing, a Brazil tax comparison and merger cash complicate the headline. We test recurring cash against the share price.
Research published October 20, 2026 · Download original report
Read Research PacketNFLX Stock: Profit Jumped — What Will Repeat? | Q3 2026
Presentation · 2026-10-21 · YouTube
Q2 20262026-07-17
NFLX Stock: The Streaming King Fell 42% — Time to Buy Netflix?
Presentation · 2026-07-17 · YouTube
Q1 20262026-04-18
NFLX Stock: EPS Beats by 56% — Q1 2026 Earnings Analysis
Presentation · 2026-04-18 · YouTube
Deep Dive2026-04-18
Q4 20252026-04-08
Charged Alpha | Netflix (NFLX) | Q4 2025 Earnings Deep Dive
Presentation · 2026-04-08 · YouTube