Netflix shares plunged over 5% after the streaming giant reported its slowest revenue growth in three years and issued a downbeat forecast for the remainder of 2026. In a letter to shareholders, co-CEOs Ted Sarandos and Greg Peters acknowledged investor concerns about viewership growth amid intensifying competition. The company is banking on former Disney executive Peter Rice to revitalize its creative leadership following a dramatic internal shake-up that also saw the firing of its content and film chiefs.
Netflix slashed approximately 1,000 jobs last week as viewership plateaued and it struggled to produce culturally disruptive hits like Squid Game. While third-quarter sales rose 12% to $12.9 billion, meeting forecasts, profits climbed 44% to $3.7 billion. However, the company warned that fourth-quarter revenue would moderate to $13.4 billion, falling roughly $300 million short of analyst expectations.
Netflix attributed the earnings miss to severance costs from the layoffs and noted advertising growth had underperformed projections.
Source: Financial Times Companies · Summarized by HeadlinesBriefing