Netflix’s Asia-Pacific Revenue Reaches $1.537 Billion as India Posts Record Growth
Key Facts
Netflix recorded its biggest-ever quarter for net paid additions in India in the third quarter, according to the shareholder letter the company published on October 20. The company did not disclose the number of additions or total subscribers in the Indian market. Revenue there grew about 18% year over year on a currency-neutral basis. Viewing hours in India also rose 24% from the same period a year earlier. The company said viewing hours per member increased at a low-to-mid-single-digit rate. These indicators put subscriber acquisition, revenue and viewing at the forefront of results in the Indian market this quarter.
Netflix linked its performance in India to its content slate and a transaction-based loyalty bundle with Flipkart. The series "Look Up" topped the content list cited by the company. It said the series recorded the highest viewing hours of any title on its platform in India during its first 91 days. The series "The Traveler’s Cafe" recorded 9 million views, while "Operation Safed Sagar" drew 11 million. These titles offer examples of local content featured on the company’s list for the quarter. The letter also cited the Flipkart partnership among factors associated with market performance, without breaking out each factor’s contribution to revenue or additions growth.
Across Asia-Pacific, Netflix revenue reached $1.537 billion in the third quarter, compared with $1.510 billion in the second quarter. Revenue increased 12% year over year on a reported basis and 15% on a currency-neutral basis. The gap between the two rates reflects the effect of currency movements on the region’s growth measured in reported dollars. Company data showed regional revenue rising from $1.369 billion a year earlier to the level recorded in the third quarter. In the second quarter, reported revenue growth was 16%, versus 18% on a currency-neutral basis. The comparison shows continued regional growth, with the rate differing according to how currency effects are calculated.
Netflix’s global revenue was $12.874 billion in the third quarter, up 11.8% from $11.510 billion in the same period a year earlier. The company said revenue growth came primarily from subscriptions, with contributions from membership and price increases, advertising growth and a positive currency effect after hedging. Operating income rose to $4.459 billion from $3.248 billion a year earlier. The operating margin reached 34.6%, compared with 28.2% in the third quarter of the previous year. Net income also rose 44% to $3.66 billion from $2.55 billion a year earlier. The company said members’ response to the price changes it made in 2026 was consistent with previous adjustments and its expectations.
Netflix, however, cut its 2026 advertising revenue forecast to about $2.7 billion from about $3 billion previously. The company attributed the reduction to a slight delay versus expectations in rolling out some advertising product capabilities. It said it plans to launch its ad-supported plan in 15 additional countries during 2027. The first wave of launches is scheduled to begin in March 2027. For the current year, the company expects revenue of $51.1 billion, growth of 13%, and an operating margin of 31.5%. For the fourth quarter, it expects revenue of $13.442 billion and an operating margin of 26%.
Fourth-quarter guidance came in below analysts’ revenue estimate, with the Associated Press reporting that Netflix’s forecast of $13.4 billion was below their estimate of $13.5 billion. After the results were announced on October 20, the stock fell 4.1% to $65.90 in extended trading, according to the agency. The stock closed at $65.85 on October 23, according to EL7 data. The company also repurchased 63.9 million shares for $4.8 billion in the third quarter, its largest-ever quarter for buybacks. Remaining capacity under its repurchase authorizations stood at $22.3 billion. These figures bring together financial guidance for the coming quarter, the stock’s reaction after results and capital allocation during the quarter.