Stock Market Today, Oct. 20: Netflix Q3 Revenue Rises 12% on Pricing Power

NASDAQ · As of 4:00 PM ET 10/20/26

Netflix (NFLX -1.66%), a global subscription streaming and live entertainment platform, closed at $68.66, down 1.70%. Investors were watching its after-close Q3 report, with ad growth and engagement metrics in focus.

Trading volume reached 51.3M shares, coming in about 47% above its three-month average of 34.9M shares. Netflix IPO'd in 2002 and has grown 57,289% since going public.

S&P 500 (SNPINDEX: ^GSPC) closed at 7,711, up 0.26%, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) finished at 26,425, down 0.02%. In entertainment streaming services and digital media subscription platforms, Walt Disney (DIS +1.90%) closed at $111.65, up 1.88%, while Amazon.com (AMZN +0.07%) closed at $262.63, up 0.07%, giving Netflix a weaker showing than these industry peers.

After the closing bell, Netflix shares took a quick haircut. As of 4:31 p.m. ET, the stock was down by 5.1% as investors considered the Q3 2026 earnings report.

Q3 revenue rose 12% year over year to $12.9 billion. Diluted earnings jumped from $0.59 to $0.87 per share. Netflix outperformed all metrics for which it provides quarterly guidance, with larger profit surprises than revenue surprises.

However, management's fourth-quarter guidance looked muted with slower year-over-year sales growth and lower profits. The lower Q4 margins will result from seasonal effects and impairment costs from the recently announced job cuts.

I thought Netflix stock looked undervalued before this report. Now, I see another discount piled on top of the existing rebates. The business itself is in great shape, and I expect the reorganization to do more good than harm in the long run.