Netflix, Inc. Profit Margin
Data as of June 01, 2026
Profit Margin (TTM)
28.5%
Revenue (TTM)
$46.89B
Sector
Communication Services
Ticker
NFLX
How It's Calculated
What This Means
Netflix, Inc.'s profit margin of 28.5% is strong, indicating the company retains a large share of revenue as net income.
About Netflix, Inc.
Netflix, Inc. (NFLX) operates in the Communication Services sector, specifically in Entertainment. With a market capitalization of about $362.21B, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $86.02, within a 52-week range of $75.01 to $134.12 (-35.9% from the high, +14.7% from the low). Beta of 1.55 suggests the stock has been more volatile than the broader market.
Trailing profit margin is about 28.5%, signaling a strong profit margin relative to many peers.
Understanding This Metric
Profit margin connects income-statement quality to valuation. For Netflix, Inc., trailing margin summarizes how much revenue converts to net profit after costs. In Communication Services, margins differ by business model — software and services often run higher margins than capital-intensive industries. Track margin trends across quarters; a stable or improving margin can support earnings durability, while sharp declines may warrant deeper review of guidance and competition.
Using This Number in Practice
At about 28.5% trailing profit margin, Netflix, Inc. (NFLX) suggests strong pricing power or cost discipline versus many large-cap peers. For large revenue bases, even a one-point margin move can shift earnings materially, so trend matters as much as the spot reading.
When comparing NFLX to alternatives, combine margin with return on equity, revenue growth, and valuation. Use our margin calculator for scenario work, and browse the NFLX metrics hub plus sector peers in the comparison section above.
Sector Comparison
Among Communication Services names on our S&P 100 coverage, Netflix, Inc.'s profit margin of 28.5% can be compared with peers such as GOOGL (37.9%), GOOG (37.9%), META (32.8%). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Communication Services stocks.
Key Takeaways
- NFLX is grouped in the Communication Services sector for peer comparisons.
- Recent beta of 1.55 suggests higher-than-market price sensitivity.
- Trailing profit margin of 28.5% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for NFLX.
Other NFLX Metrics
Frequently Asked Questions
What is NFLX's profit margin?
Trailing profit margin measures net income as a percent of revenue. Netflix, Inc.'s margin is about 28.5% on this snapshot — higher margins often support stronger valuation multiples in Communication Services.
Is 28.5% strong for Communication Services?
Peers in Communication Services such as GOOG (37.9%), GOOGL (37.9%), META (32.8%) help benchmark NFLX's 28.5%. Margins vary by sub-industry and accounting cycle.
How often is profit margin updated?
Margins update after quarterly earnings; price-only fields refresh on trading days. Data as of June 01, 2026.
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