Reportable Segment — Operating margin
Netflix Reportable Segment — Operating margin increased by 14.5% to 32.3% in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 1.9%, from 31.7% to 32.3%. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
How to read this metric
An increase indicates improved operational efficiency or better cost management relative to revenue growth, while a decrease suggests rising production or overhead costs that are outpacing revenue gains.
Detailed definition
This metric represents the operating profitability of the company's primary business segment by measuring the percentage...
Peer comparison
This is a standard profitability measure across the media and entertainment industry, comparable to operating margins reported by other streaming services or content production studios.
nflx_segment_reportable_segment_operating_marginHistorical Data
| Q1 '24 | Q2 '24 | Q3 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|
| Value | 28.1% | 27.2% | 29.6% | 31.7% | 34.1% | 28.2% | 32.3% |
| QoQ Change | — | -3.2% | +8.8% | +7.1% | +7.6% | -17.3% | +14.5% |
| YoY Change | — | — | — | +12.8% | +25.4% | -4.7% | +1.9% |
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Frequently Asked Questions
- What is Netflix's reportable segment — operating margin?
- Netflix (NFLX) reported reportable segment — operating margin of 32.3% in Q1 2026.
- How has Netflix's reportable segment — operating margin changed year-over-year?
- Netflix's reportable segment — operating margin increased by 1.9% year-over-year, from 31.7% to 32.3%.
- What does reportable segment — operating margin mean?
- The percentage of revenue that remains as profit after paying for all direct operating expenses of the business segment.