Netflix beat earnings estimates for Q3 with revenue up 12%, but shares fell 5% on weaker-than-expected 2026 revenue guidance and ongoing concerns about viewership growth and competition.
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01Summary
- 01Q3 net income was $3.66 billion, or 87 cents per share, beating analyst estimates.
- 02Revenue rose nearly 12% year over year to $13.44 billion, in line with forecasts.
- 03The company now expects 2026 revenue of $51.1 billion, below Wall Street's $51.2 billion forecast.
- 04Netflix confirmed layoffs of about 1,000 workers (6% of staff) and named Peter Rice as chief content officer.
- 05Shares fell roughly 5% in extended trading following the report.
02Why it matters
The results signal Netflix's ability to grow revenue through price hikes and membership gains, but the cautious 2026 outlook and viewership concerns highlight persistent challenges from rivals like YouTube and shifting viewer habits.
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