Netflix Q3 revenue growth slowest in three years; Wall Street dings stock

· Entertainment · United States

Netflix reported third-quarter 2026 earnings that met revenue expectations and slightly beat on the bottom line, but revenue growth slowed to its lowest rate in three years. The streamer forecast a fourth-quarter slowdown and said it will miss its ad sales target for the year, prompting a skeptical Wall Street to punish the stock. The results came after Netflix laid off 1,000 employees and ousted chief content officer Bela Bajaria, replacing her with veteran TV executive Peter Rice. Co-CEOs Ted Sarandos and Greg Peters addressed the changes on the earnings call. Sarandos said Netflix "could do better" on execution in the U.S. and praised Bajaria's decade-long run, while saying Rice will blend "art and commerce" in reorienting film and TV operations. Peters called the layoffs a hard tradeoff for long-term growth.

Why it matters：Netflix is the industry's bellwether streamer, so slower growth, a missed ad target and a content leadership shake-up signal that the streaming boom is maturing and that advertising and engagement are now the battlegrounds for every major media company.

Key points

  • Revenue growth for the quarter was the slowest in three years.
  • Netflix said it will miss its ad sales target for the year and forecast a Q4 slowdown.
  • The results followed 1,000 layoffs and the replacement of content chief Bela Bajaria with Peter Rice.

Sources (original reporting)

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