Netflix‘s third-quarter 2026 earnings met revenue expectations and it slightly beat on the bottom line. But the streamer faces an urgent need to refresh its queue: Revenue growth in the period slowed to its lowest rate in three years, and the company just laid off 1,000 employees in a restructuring effort to reposition itself.
\n\nNetflix posted Q3 revenue of $12.87 billion, up 11.8% year-over-year. That’s compared with 17% top-line growth a year ago. Net income came in at $3.66 billion (versus $2.55 billion a year earlier), translating to earnings of 87 cents per share. Operating margin was 34.6%, versus 33.2% expected.
\n\nMeanwhile, the company projected Q4 revenue of $13.4 billion, which would be an increase of 11.5%. That’s below Wall Street’s prior expectations of $13.5 billion.
\n\nFor full-year 2026, the company now expects advertising revenue of about $2.7 billion, whereas it previously had been forecasting $3 billion. Netflix blamed the lower ad-revenue take on “slightly slower than expected rollout of some ad product capabilities.”
\n\nAs Netflix has seen per-subscriber engagement drift downward in recent quarters, particularly in the U.S., the company last week laid off about 1,000 employees, about 6% of its workforce. The company ousted chief content officer Bela…
Original source: https://variety.com/