Netflix posts third-quarter earnings beat, says viewer engagement remains ‘healthy’
Netflix said profit rose on higher membership and price gains, but it cut its 2026 ad forecast to about $2.7 billion after slower product rollout.
- Netflix laid off roughly 1,000 employees last week, or 6% of its workforce, while replacing Chief Content Officer Bela Bajaria with former Disney and Fox executive Peter Rice.
- Shares entered Tuesday's earnings report down about 44% in the last 12 months as sales in the United States and Canada rose only 11% in Q3, compared with 17% a year earlier.
- Despite these challenges, the streaming giant announced third-quarter revenue grew 12% year over year to $12.9 billion, while net income rose 48% to nearly $3.7 billion.
- Co-CEO Ted Sarandos said on Tuesday, "We do need better execution in the US," while emphasizing Netflix must deliver consistent "quality and quantity" of programming.
- Netflix plans to release 30 films theatrically this year and expects strong revenue growth into 2027 by focusing on member growth, pricing, and advertising.
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263 Articles
Too Many Cheeseburgers, No Steak: Peter Rice's Netflix Challenge
I wrote about Bela Bajaria’s ouster from Netflix, TV’s comedy crisis, how Casey Bloys beat Cindy Holland to earn Skydance’s top streaming job, and HBO’s “really active” dealmaking as the merger closed. Call it Netflix 3.0. Netflix has 325 million subscribers, a $20 billion annual programming budget and one of the most powerful distribution platforms in entertainment. So why does it suddenly need a creative overhaul? That’s the question awaiting …
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.
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