Netflix Shares Sink Despite Q3 Earnings Beat After Executive Shuffle
Netflix's third-quarter earnings failed to excite investors, a week after a major content executive shuffle and its biggest round of layoffs since 2022.
Revenue: $12.87 billion vs $12.86 billion estimated ($11.5 billion in Q3 2025)
Earnings: $0.87 per share vs $0.82 per share estimated ($0.59 per share in Q3 2025)
Shares fell 6% in immediate after-hours trading on Tuesday.
Wall Street's expectations were roughly in line with Netflix's guidance.
Heading into Q3 earnings, Netflix's stock was down over 44% in the last year as investors worried about engagement growth and stiff competition from YouTube and other free streamers.
The results came less than a week after Netflix shook up its content leadership team and cut about 1,000 workers.
- Content chief Bela Bajaria is leaving her role after more than three years.
- Film chief Dan Lin is also out.
Bajaria will be replaced by Peter Rice, a former Fox and Disney exec who ran Disney's TV division, including ABC and FX. Netflix hasn't yet said who will replace Lin; Rice will oversee film in the meantime.
The leadership changes come as Netflix battles slowing viewership growth. The streaming powerhouse generated 97 billion viewing hours in the first half of the year, which was up 2% year-over-year.
Business Insider has Games!
Want more Business Insider in your news feed?
- Add BI in Google so our reporting is easier to find when you’re searching for what matters.
- Add to Preferred Sources