Netflix (NASDAQ: NFLX) Q3 Earnings Preview: What to Watch for in Report

• Analysts project Netflix to report $0.82 EPS and $12.90 billion in Q3 revenue.
• Concerns persist over declining U.S. TV viewing share (from 8.8% to 7.8%) and competition.
• Internal shifts include a lost acquisition bid for Warner Bros. Discovery and executive changes.

Netflix (NASDAQ: NFLX) is set to report third-quarter earnings after the market closes on October 20, 2026. The streaming company sells subscriptions to its shows, films and live events, competing for viewers with services such as YouTube. Wall Street expects earnings of $0.82 per share and revenue of approximately $12.90 billion.

The report arrives with Netflix shares down 26% year to date and trading near a 52-week low. As highlighted by 24/7 Wall Street, 35 analysts are bullish on the stock, while 15 remain on the fence. The results give investors a chance to compare the company’s performance with Wall Street’s estimates.

Viewing time is another focus. According to Nielsen, Netflix’s share of U.S. TV viewing fell from 8.8% to 7.8% in the year through July. As highlighted by The Motley Fool, investors are watching weak viewing-hour growth, disappointing original programming and competition from YouTube. Management argues that live sports can attract subscribers without producing as many viewing hours as other content.

Investors are also watching changes inside the company. As highlighted by The Motley Fool, Netflix lost its planned Warner Bros. Discovery (NASDAQ: WBD) acquisition after Paramount Skydance outbid it. As highlighted by Deadline, the company has brought in Peter Rice, seen Chief Content Officer Bela Bajaria and other executives depart, and carried out its deepest round of layoffs since 2022.

Netflix trades at 21.6 times trailing earnings and 6.0 times trailing sales. These ratios compare its stock value with profit and revenue over the past 12 months. Its enterprise value, which accounts for debt and cash, is 6.1 times sales. Investors may weigh those prices against the reported results and management’s outlook.