Netflix's Operating Income for the
three
months ended in Mar. 2026 was $3,957 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $13,937 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Netflix's Operating Income for the
three
months ended in Mar. 2026 was $3,957 Mil. Netflix's Revenue for the
three
months ended in Mar. 2026 was $12,250 Mil. Therefore, Netflix's Operating Margin % for the quarter that ended in Mar. 2026 was 32.30%.
Good Sign:
Netflix Inc operating margin is expanding. Margin expansion is usually a good sign.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Netflix's annualizedROC % for the quarter that ended in Mar. 2026 was 25.50%.
Netflix's annualizedROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 1,311.92%.
Netflix (NAS:NFLX) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Netflix's annualizedROC % for the quarter that ended in Mar. 2026 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.
Be Aware
Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Netflix Operating Income Related Terms
Netflix Operating Income Historical Data
* Premium members only.
The historical data trend for Netflix's Operating Income can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.
Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $13,937 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Netflix (NFLX) has a Operating Income of $13,937 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Netflix and its competitors.
Is Netflix's Operating Income too high?
Netflix's current Operating Income is $13,937 Mil. Overall, Netflix has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netflix's Operating Income compare to DIS and WBD?
Netflix's Operating Income of $13,937 Mil can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Media - Diversified company?
A good Operating Income depends on the Media - Diversified industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Netflix and its competitors. Netflix's current Operating Income is $13,937 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netflix stock overvalued right now?
Based on GuruFocus' analysis, Netflix (NFLX) is currently considered Modestly Undervalued. The stock's GF Value™ is $98.48, compared to a current price of $74.89 — trading 24% below its estimated fair value. The current Operating Income is $13,937 Mil. Netflix's overall GF Score™ is 95/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Netflix (NFLX), the current Operating Income is $13,937 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Netflix (NFLX) Overvalued in 2026?
Based on GuruFocus' analysis, Netflix stock appears to be undervalued.
The current stock price of $74.89 is trading 24% below its estimated GF Value™ of $98.48.
GuruFocus considers Netflix to be Modestly Undervalued.
Key valuation signals for NFLX:
Operating Income: $13,937 Mil
GF Value™: $98.48 vs. price of $74.89 (24% below fair value)
No single metric tells the full story. See the NFLX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
95GF Score
Get the complete analysis for NFLX
Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NFLX has been successfully added to your 
