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Netflix posts third-quarter earnings beat, says viewer engagement remains ‘healthy’
The company also narrowed its ad revenue outlook and said recent layoffs and leadership changes will support investment in higher-impact areas.
- On Tuesday, October 20, 2026, Netflix reported third-quarter revenue of $12.87 billion and earnings per share of $0.87, beating Wall Street expectations, but issued softer fourth-quarter guidance and cut its 2026 advertising revenue forecast to $2.7 billion.
- Former Disney and Fox executive Peter Rice replaced Chief Content Officer Bela Bajaria, while film chief Dan Lin departed, following the layoff of 1,000 employees—roughly 6% of the workforce—as part of a leadership overhaul.
- Average monthly viewing per member fell to 49 hours in the first half of 2026 from 66 hours in 2023, while YouTube accounted for 14.2% of U.S. TV viewing time in July versus Netflix's 7.8% share.
- Netflix shares fell more than 5% in after-hours trading following the earnings release, as investors expressed concerns about soft engagement trends and decelerating revenue growth amid intensifying competition.
- Executives stated Netflix will prioritize original shows and live events to make the platform a "must-have" service, with management confident in executing this strategy through 2027 to accelerate growth.
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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>
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The 10% cut in advertising revenue forecast has triggered the fall of their shares on Wednesday.
Coverage Details
Total News Sources237
Leaning Left34Leaning Right29Center50Last UpdatedBias Distribution44% Center
Bias Distribution
- 44% of the sources are Center
44% Center
L 30%
C 44%
R 26%
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