Netflix shares fall as sales growth slows

Third-quarter revenue

12.87 US$ billion

Netflix's third-quarter revenue rose 11.8 per cent to US$12.87 billion, in line with forecasts but the slowest increase in nearly three years. Shares fell about 5 per cent on Wednesday.

The company cut its 2026 advertising forecast to about US$2.7 billion, from about US$3 billion, and blamed ads for its weaker sales outlook for the last quarter.

"I know we can do better. That better is our upside."

— Greg Peters, Netflix co-chief executive

The shake-up

• Chief content officer Bela Bajaria replaced
• Film chief Dan Lin departing
• About 1,000 jobs cut, 6% of staff
• Peter Rice, ex-Disney, brought in

Netflix is overhauling its leadership to lift the quality of its shows, after months without a big hit and as viewers drift to YouTube and TikTok.