Netflix meets Q3 revenue forecasts but cuts 1,000 jobs amid slowing growth
Netflix posted Q3 revenue of $12.87 billion, matching expectations, while announcing a 1,000-person layoff as growth slows.
Netflix's third-quarter results showed revenue of $12.87 billion, up 11.8% from a year earlier and in line with analyst estimates, while earnings per share reached 87 cents. Net profit climbed to $3.66 billion, and operating margin improved to 34.6%, slightly above the 33.2% forecast. Growth in revenue slowed to its lowest rate in three years, leading the company to lay off roughly 1,000 employees, about 6% of its workforce, and to reshuffle senior content leadership, removing Bela Bajaria and promoting Peter Rice.
Advertising revenue guidance for 2026 was reduced to roughly $2.7 billion, down from a prior $3 billion target. For the upcoming quarter, Netflix projects $13.4 billion in revenue, shy of the $13.5 billion Wall Street had anticipated, and expects a Q4 operating margin of 26.0% after accounting for layoff costs.
How this was covered
- The two sides describe this in almost entirely different words
- Coverage peaked at 8 outlets in a single hour
Why it matters
The earnings and job cuts signal challenges for Netflix's growth and its impact on the streaming market.
How this story developed
- Oct 14 Netflix cuts about 1,000 jobs, slashing 6% of its workforce
- Oct 14 The cuts constitute Netflix’s largest layoff since the 2022 reduction.
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