Netflix posts third-quarter earnings beat, says viewer engagement remains 'healthy'
Wall Street and investors will be looking for Netflix to provide additional details about the company's strategy following recent organizational changes
Key points
- Netflix reported third-quarter earnings above analyst estimates and revenue in line with projections.
- Revenue rose almost 12% year over year, helped by membership growth and March price increases.
- Netflix narrowed its 2026 revenue forecast to $51.1 billion, the low end of its prior range.
Netflix reported third-quarter earnings on Tuesday that beat analyst estimates, while revenue came in line with projections, CNBC reported. The results cover the period ended Sept. 30.
Revenue rose almost 12% year over year, which the company attributed to membership growth and subscription price increases that took effect in March. Netflix said the response to those price hikes matched prior changes and its expectations.
Profit and forecasts
Net income was $3.66 billion, or 87 cents per share, compared with $2.55 billion, or 59 cents a share, in the same period last year. Netflix said the year-over-year jump was due in part to the timing of expenses.
For the fourth quarter, Netflix expects revenue to rise more than 11% to $13.44 billion, driven by memberships, pricing and ad revenue. It narrowed its 2026 full-year forecast to $51.1 billion, a 13% increase, at the low end of its earlier range of $51 billion to $51.4 billion.
With intense competition and an explosion of content competing for consumer attention, strategic clarity and excellent execution are critical
— Netflix
Staff changes and engagement
Last week, Netflix said it was laying off about 6% of employees, roughly 1,000 workers, and that Chief Content Officer Bela Bajaria was leaving that role. Former Disney executive Peter Rice has been named the new CCO, but it is not yet clear how he will address concerns about viewership.
In its shareholder letter, the company said it knows there is "some investor concern about our view hours growth," but that engagement remains healthy. Netflix said it plans a three-step strategy to accelerate growth in view hours: deliver more entertainment value to members, use technology to improve the service, and improve monetization.
