Netflix grew revenue 16.0% over the past twelve months, faster than Disney, Amazon, Comcast and Apple, and its 29.7% operating margin trails only Apple's. Yet its shares fell 42.2% over the past year, the steepest drop among the five companies, and now trade at 21.6 times trailing earnings, close to Disney's 21.9. Growth has come from more memberships, price increases and ad revenue, though ads remain small, with the company expecting $3.00 billion of ad revenue in 2026 out of $51.20 billion in total revenue. Quarterly revenue growth has slowed to 13.4% in Q2 2026 from 16.2% in Q1, and Netflix guided to 12.0% for Q3, while its operating margin keeps rising, guided to 33.2%. The article suggests the share price may assume Netflix's growth will drift toward its peers', and says the October 20, 2026 report will be key for revenue growth.
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