Netflix’s Regions Abroad Are All Growing Faster Than Its Home Market. I Don’t Think That Makes the Stock a Bargain.

Netflix (NFLX +0.44%) already earns most of its revenue from outside its home market. In the second quarter of 2026, the U.S. and Canada made up $5.4 billion of the company‘s $12.6 billion in revenue, or around 43%.

But the rest of the world is now growing far faster. In the second quarter, U.S. and Canada revenue climbed 10% year over year, the slowest of Netflix’s four regions. Meanwhile, Europe, the Middle East, and Africa (EMEA) grew 14%, Latin America grew 21%, and Asia-Pacific grew 16%.

The growth stock, around $71 as of this writing, is about 43% off its 52-week high of $124.86, and slowing revenue growth is probably a big reason.

Can faster growth abroad make up for a maturing home market? I don’t think it’s that simple.

The gap is new

As recently as late 2025, the home region’s reported growth wasn’t trailing at all. Revenue in the U.S. and Canada grew 18% year over year in the fourth quarter — as fast as EMEA and ahead of Latin America’s 15% and Asia-Pacific’s 17%. By the first quarter of 2026, growth at home had slipped to 14%. And in the second quarter, it was 10%. Put another way, the gap opened because the home region’s growth rate dropped by almost half in two quarters.

The timing of price increases probably explains a lot of that swing. Netflix hiked its U.S. prices in January 2025, and the region’s growth rate doubled over the rest of that year, climbing from a 9% pace in the first quarter to 18% in the fourth.

The next U.S. increase didn’t come until late March 2026, when the standard plan moved from $17.99 to $19.99 a month. Management said the second quarter’s 10% growth in the region captured just a partial quarter of that change. That suggests growth at home could pick up again in the second half of the year.

Is growth abroad speeding up?

Still, the regions abroad aren’t speeding up. In EMEA and Latin America, part of the second quarter’s growth came from favorable exchange rates.

Netflix also reports every region’s growth on a currency-neutral basis, and by that measure, all three regions abroad have slowed this year.

Showing how much currency helped, EMEA’s 14% growth in the second quarter was 11% excluding foreign exchange. That was down from 15% in the fourth quarter of 2025 and from 12% at the start of 2026. Latin America’s currency-neutral growth fell from 20% to 18% to 16% across the same three quarters, and Asia-Pacific’s slipped from 19% to 18%.

EMEA is Netflix’s largest region abroad, with around $4 billion in revenue a quarter. Once currency is stripped out, its 11% growth was barely above the home region’s 10%.

Members abroad pay far less

Netflix no longer breaks out memberships or revenue per membership by region. But in 2024, the last year it did, the U.S. and Canada had around 30% of the company’s paid memberships and made up about 45% of its revenue.

The average membership at home brought in $17.20 a month that year, compared with $10.96 in EMEA, $8.24 in Latin America, and $7.29 in Asia-Pacific.

To be fair, lower prices abroad may leave Netflix room to charge more over time. Its price changes in the first half of this year included Mexico and Spain, and U.K. prices went up in early September. But if gaps like those still exist, every new member abroad brings in far less revenue than one at home, so it takes much more growth abroad to lift the total.

Today’s Change

(0.44%) $0.31

Current Price

$70.61

Key Data Points

Market Cap

$294BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day’s Range

$70.56 – $71.55

52wk Range

$65.08 – $124.86

Volume

24.2M

Avg Vol

36.7M

Gross Margin

49.53%

And management expects total growth to slow further. Its forecast is for third-quarter revenue to climb 12% year over year, down from 13% in the second quarter, or 11% excluding foreign exchange. That forecast comes even though the third quarter, which Netflix reports on Tuesday, Oct. 20, should get three full months of higher U.S. prices.

In the end, I don’t think faster growth abroad will make up for a slower home region. The regions abroad are also slowing, and growth at home seems to depend heavily on the timing of price increases.

Luckily, the stock doesn’t look priced for much more. Based on the profit analysts expect on average for 2027, its price-to-earnings ratio is around 19. That isn’t high for a company forecasting operating income growth of over 20% this year. But with revenue growth slowing in every region on a currency-neutral basis, I don’t think the stock is a bargain, either.