The Truth About Netflix’s Massive Stock Buybacks
Tuesday evening, Netflix delivered a solid third-quarter financial report for fiscal 2026, posting $12.87 billion in revenue — an 11.9% year-over-year increase. Operating income rose by 34.6% and net income jumped 43.9%. Free cash flow ticked 8.4% higher, amounting to 86% of earnings and 25% of revenue.
Despite these strong operating metrics, Wall Street kind of hated the release. Major financial institutions such as Barclays and Goldman Sachs lowered their price targets, while Needham downgraded the stock from Buy to Hold. Netflix’s stock price also dropped as much as 6.7% on Wednesday morning.
Image source: Netflix.
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