# Needham Downgrades Netflix to Hold After Third-Quarter Results By John Kim Canonical URL: https://www.tokenpost.com/news/business/37079 Published: 2026-10-21T22:00:38.000Z Updated: 2026-10-21T22:00:38.000Z Section: Business > Netflix reported $12.874 billion in third-quarter revenue, up 11.8% year over year, and diluted earnings of $0.87 per share. Needham downgraded Netflix to Hold after the streaming company released its third-quarter results. Netflix recorded $12.874 billion in revenue for the quarter ended Sept. 30, up 11.8% from a year earlier. Diluted earnings were $0.87 per share, above the $0.82 analysts expected. Operating margin reached 34.6%, compared with 28.2% a year earlier; expense timing helped Netflix exceed its margin forecast. The [post-earnings share decline]() reached 5.2% at 12:40 p.m. ET (16:40 UTC) Wednesday, Oct. 21, after Netflix lowered its advertising forecast and issued fourth-quarter guidance below analyst expectations. ## Links in this article - [post-earnings share decline](https://www.tokenpost.com/news/investing/36861)