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Netflix announced that its financial forecast for the next quarter was not as good as expected, with revenue growth falling to a nearly three-year low and lowering its advertising revenue target for 2026. It is also trying to revive growth through layoffs and senior management adjustments.
video streaming platformNetflix TodayUS stocks The financial forecast released after the market closed was not as good as expected. The company recentlyretrenchment With the replacement of about 1,000 employees and two programming executives, the company is trying to revive growth.
Reuters reported that Netflix’s revenue in the last quarter ended September 30 increased 11.8% year-on-year to US$12.87 billion. Although this was in line with analysts’ expectations, it marked the lowest growth in the last three years; Earnings per share (EPS) for the same period were 87 cents, which was better than the market estimate of 82 cents.
Netflix estimates net profit for the quarter will be US$2.79 billion and EPS of 67 cents, below analysts’ average forecasts of US$3.07 billion and 73 cents, respectively.
Netflix cut its 2026 advertising revenue forecast to about $2.7 billion from about $3 billion. Senior executives wrote to shareholders saying the rollout of some ad product features was slower than expected.
Looking ahead, Netflix said it will continue to expand its product lineup by licensing more third-party content. In the letter, executives said they will focus on core streaming services such as TV, movies, and live broadcasts, and invest in original programs that can “highlight topics, attract more members, and make us a ‘must-have’ service.”
Netflix laid off 1,000 employees last week, about 6% of its total workforce, and ousted content chief Bela Bajaria. It was also announced that film department head Dan Lin was resigning, indicating that the company was adjusting its programming strategy.
Summary FAQ
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Netflix estimates net profit for the quarter will be US$2.79 billion and earnings per share will be 67 cents, lower than analysts’ average estimate of US$3.07 billion and 73 cents, indicating the market has higher expectations of its short-term profits.
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Netflix’s revenue rose 11.8% year-on-year to US$12.87 billion in the last quarter ended September 30. Although this was in line with expectations, the growth rate was the lowest in the past three years; Earnings per share of 87 cents were better than market estimates of 82 cents.
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Netflix laid off nearly 1,000 people last week and replaced two program production executives. It also revised up its advertising revenue forecast for 2026. In the future, it will expand third-party authorized content and focus on originals, TV, film and live broadcast services.
