Netflix’s India viewership jumps 24% in Q3, revenue grows nearly 20%

Netflix reported a 12% year-on-year increase in revenue in Q3 2026, driven primarily by subscription revenue, higher memberships and pricing, growth in advertising revenue and a favourable impact from foreign exchange rates, net of hedging.

Operating income rose 37% year on year to $4.5 billion, while operating margin expanded to 34.6% from 28.2% in Q3 2025. Both operating income and margin came in ahead of Netflix’s forecast, aided largely by the timing of expenses and slightly higher-than-expected revenue.

Diluted earnings per share stood at $0.87 for the quarter, up 49% from $0.59 in the year-ago period.

However, advertising remains a relatively small contributor to Netflix’s overall business. The company lowered its full-year advertising revenue guidance from $3 billion to $2.7 billion, pointing to softer-than-expected growth in what has emerged as a key area of focus for the streaming platform. Netflix expects total revenue of $51.1 billion for 2026, putting advertising revenue at less than 6% of the company’s overall revenue. Subscription revenue continues to account for the bulk of its business.

India delivers strongest quarter for paid additions

India emerged as a strong market for Netflix during the quarter, with view hours rising 24% year on year. View hours per member also grew in the low-to-mid single digits.

The quarter was led by a slate that included Lock Upp, Netflix’s first daily reality series, which recorded the highest viewing for any Netflix title in India to date. The slate also included scripted series Musafir Café, which recorded 9 million views in its first 91 days, and Operation Safed Sagar, which recorded 11 million views.

Netflix also introduced its first transaction-based loyalty bundle with Flipkart during the quarter. The combination of its content slate and the new partnership helped the streaming platform record its largest-ever quarter for paid net additions in India.

Revenue from India grew approximately 18% year on year on a foreign-exchange-neutral basis.

Netflix also acknowledged that viewership growth remains an area of focus. CFO Spencer Adam Neumann said the company wants view hours to grow faster and is “not satisfied” with the current pace, although he noted that revenue growth remains healthy even with modest growth in viewing.

He said Netflix’s revenue growth is currently being driven by three levers — membership growth, pricing and advertising — and expects all three to continue contributing in 2027. India was cited as an example of stronger engagement translating into business growth, with a strong content slate driving a 24% year-on-year increase in view hours and nearly 20% revenue growth on an FX-neutral basis.

Netflix expands advertising infrastructure

Netflix continues to invest in its advertising technology platform, Netflix Ads Suite. During Q3, the company expanded programmatic access through globally available CTV marketplace deals and added partnerships with MercadoLibre in Latin America and Adform in Europe, the Middle East and Africa.

The platform is also expanding its in-DSP measurement capabilities, including reach, frequency and attribution.

Netflix plans to roll out its advertising-supported tier in 15 additional countries in 2027. The first phase of launches is scheduled for March 2027 and will cover nine countries in EMEA, along with Colombia, Peru and New Zealand.

Q4 outlook

For Q4, Netflix expects revenue of $13.4 billion, representing 12% year-on-year growth. The company has projected an operating margin of 26%, compared with 24.5% in Q4 2025.

The forecast includes an approximately 120-basis-point negative impact from the company’s recently announced headcount reductions.

Beyond its own original programming, Netflix also plans to expand its entertainment offering through licensing and additional partnerships that bring third-party content to the platform. The TF1 partnership in France is one such example.