Netflix released third-quarter financial results ending September 30, exceeding analyst earnings estimates while revenue met expectations. The streaming company reported net income of $3.66 billion, or 87 cents per share, compared with $2.55 billion, or 59 cents per share in the same period a year earlier. Revenue climbed nearly 12% year over year, driven by membership growth and subscription price increases implemented in March.
The company issued fourth-quarter revenue guidance of $13.44 billion, representing growth exceeding 11%. Netflix narrowed its full-year 2026 revenue forecast to $51.1 billion, a 13% increase versus the prior year, positioning the projection at the lower end of its previously stated range of $51 billion to $51.4 billion and below analyst consensus expectations of $51.2 billion according to LSEG data.
Netflix reduced its full-year advertising revenue forecast to approximately $2.7 billion, down from a prior projection of roughly $3 billion, citing slower-than-expected deployment of certain advertising capabilities. The company acknowledged investor concerns regarding view hours growth but stated that overall engagement metrics remain solid and deliver strong member value. Netflix outlined a three-part growth strategy emphasizing increased entertainment value, technology improvements, and enhanced monetization approaches.
Share prices declined approximately 4% following the earnings announcement in extended trading. The company noted that recent organizational changes, including a 6% workforce reduction affecting roughly 1,000 employees and the departure of Chief Content Officer Bela Bajaria, would negatively impact fourth-quarter operating margin by approximately 120 basis points. Peter Rice, a former Disney executive, was named as the new chief content officer.
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