Netflix Q4 earnings forecast drops 7%

Netflix has announced that it expects to achieve lower-than-expected profits in the fourth quarter, with net income projected at $2.79 billion and earnings per share of 67 cents—below analysts' predictions of $3.07 billion and 73 cents per share. The company's stock dropped by 7% after the announcement, despite revenue increasing by 11.8% in the third quarter to $13.44 billion. However, revenue growth has slowed to its slowest pace in three years. Netflix faces increasing competition from platforms like YouTube and TikTok and is working to expand its content through external licenses and investments in original programming. This comes after the company laid off approximately 6% of its staff and made changes to its executive leadership, especially in content management. Additionally, Netflix experienced subscriber losses within the United States during the year 2026, according to external data, as it continues to face challenges in regaining momentum.

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