Netflix, Inc. (NFLX) generated strong free cash flow (FCF) in Q3 in its Oct. 20 earnings release. However, it guided to lower 2026 FCF, reducing it to $12 billion from $12.5 billion. Despite this, Q3 FCF margin stayed high at 22.9%, and revenue is forecast to rise next year.
Nevertheless, analysts lowered their price targets, and NFLX dropped. Is it too cheap?