Netflix's third-quarter revenue rose 11.8% to $12.9 billion, matching Wall Street estimates, while diluted EPS jumped 47% to $0.87, beating forecasts. The company repurchased 63.9 million shares for $4.8 billion, its largest buyback ever and well above free cash flow of $2.9 billion, leaving $22.3 billion on its authorization. As of the end of the quarter, shares traded 48% below their June 2025 peak, and the P/E ratio averaged 23.6 during the quarter. The article cites over 325 million subscribers at year-end 2025, expected 2026 revenue of $51.1 billion, and operating income of $12.6 billion through the first nine months of 2026 with a 33.4% margin. However, Q4 revenue guidance of 11.5% growth would mark a fourth straight quarter of decelerating gains, with saturation, short-form video competition and pricing limits cited as concerns.
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