Netflix posted its slowest quarterly revenue growth in three years and said it is working to increase viewing time as it reduces its workforce and replaces senior programming executives.
The company reported third-quarter revenue of $12.9 billion, up 12% from a year earlier. Net income rose about 44% to $3.66 billion. Netflix shares fell about 5% in after-hours trading.
Over the past week, Netflix has cut roughly 1,000 jobs, or about 6% of its workforce, and parted ways with its content chief and the head of its film unit, an acknowledgment that its programming has struggled. The company’s stock is down more than 40% over the past year amid investor concerns about growth following its failed bid for Warner Bros. Discovery’s studios and HBO Max.
The Wall Street Journal reports Netflix now expects full-year 2026 revenue of $51.1 billion, up 13% from 2025 and slightly below the midpoint of its earlier forecast of 13% to 14% growth. It also lowered its 2026 advertising revenue projection to $2.7 billion from roughly $3 billion, citing a slower-than-expected rollout of some ad products. Subscription revenue growth exceeded expectations, the company said.
Subscriber churn was about 2% in September, flat from August and the lowest in the industry, according to Antenna. However, Americans have recently spent less time watching Netflix programming, which the company has acknowledged is a concern because strong viewership helps retain subscribers after price increases.
During the quarter, Netflix released programming that included its adaptation of “Little House on the Prairie” and the second season of “The Gentlemen.”