Netflix posts third-quarter earnings beat, says viewer engagement remains ‘healthy’
- On Tuesday, Netflix reported third-quarter revenue of $12.87 billion and earnings per share of $0.87, beating Wall Street estimates, though shares fell as investors reacted to weaker forward guidance.
- Last week, Netflix laid off approximately 1,000 employees, about 6% of its workforce, and replaced Chief Content Officer Bela Bajaria with former Disney executive Peter Rice to reset content strategy.
- Jefferies analysts estimate average monthly viewing time per member fell to 49 hours in the first half of 2026, down from 66 hours in 2023, while YouTube captured 14.2% of U.S. TV viewing versus Netflix's 7.8%.
- Netflix lowered its 2026 advertising revenue forecast to $2.7 billion from roughly $3 billion, citing slower-than-expected ad product deployment, while issuing weaker-than-expected fourth-quarter profit guidance.
- Management aims to establish Netflix as a 'must-have' service by prioritizing original content and third-party licensing while leveraging live events to spark conversation and attract new members.
225 Articles
225 Articles
Netflix loses pace of growth, shares fall - what losses can await streaming giant Netflix for the fourth time in a row predicts a slowdown in revenue growth, and its advertising business is <p>developing more slowly than expected. Since the beginning of the year, the company's shares have lost about a quarter of their value.</p>
The 10% cut in advertising revenue forecast has triggered the fall of their shares on Wednesday.
Netflix shares slide 4% as slowing sales growth raises fresh concerns
Netflix shares fell after the streaming giant reported its slowest sales growth in three years and forecast another quarter of slowing revenue growth. Its fourth quarter sales outlook missed analysts’ expectations, while weaker than expected advertising revenue added to concerns. The stock had already declined 30% this year, underperforming the S&P 500.
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