Netflix reported an 11.8 percent year-on-year increase in third-quarter revenue to $12.87 billion, while net income rose to $3.66 billion for the quarter ended September 30, 2026, according to a Reuters report yesterday.

According to LSEG data, Netflix reported earnings per share of 87 cents, ahead of the analyst consensus estimate of 82 cents. Revenue came in line with market expectations, rising from the corresponding quarter a year earlier.

The revenue growth was supported by membership gains and subscription price increases introduced in March. Netflix said the response to the latest price changes had been consistent with its previous increases and expectations.

Net income climbed from $2.55 billion, or 59 cents per share, in the same quarter last year to $3.66 billion, or 87 cents per share. The company attributed part of the increase to the timing of expenses.

Netflix expects fourth-quarter revenue to rise by more than 11 percent to $13.44 billion, supported by membership growth, pricing changes and advertising revenue. For the full year, it forecast revenue of $51.1 billion, representing a 13 percent increase over the previous year.

However, the full-year outlook sits towards the lower end of Netflix’s earlier guidance of $51 billion to $51.4 billion and falls below the $51.2 billion expected by analysts, according to LSEG.

Despite the revenue growth, investors are closely watching Netflix’s ability to maintain audience engagement as competition from YouTube and other digital platforms intensifies. Concerns over viewing trends, subscriber churn and changing content consumption habits have added pressure on the company to demonstrate how it plans to sustain growth.

According to the Reuters report, Netflix co-CEO Ted Sarandos recently acknowledged that the company was “not growing as fast as I want us to” and suggested that live programming could help accelerate growth.

YouTube commands nearly twice Netflix’s viewing time in the US, according to Nielsen data cited by Reuters. Meanwhile, market research firm Apptopia reported that Netflix’s US user churn increased 16.6 percent year-on-year in the third quarter, while app downloads across the US and Canada fell 20 percent.

Jefferies estimated that average monthly viewing time per Netflix member declined to 49 hours in the first half of 2026, compared with 66 hours during the same period in 2023. Analysts have pointed to a weaker content slate compared with the previous year and the impact of the 2026 FIFA World Cup on viewing habits as possible factors affecting engagement.

In its shareholder letter, Netflix said it had made progress on its three strategic priorities during the third quarter but acknowledged that it needed to do more as competition for consumer attention continued.

Netflix is also navigating organisational changes. The company recently announced plans to cut approximately 6 percent of its workforce, equivalent to around 1,000 jobs.

Chief Content Officer Bela Bajaria is leaving the role, with former Disney executive Peter Rice named as her successor.

Live programming and sports remain part of Netflix’s efforts to attract audiences. The company recently acquired broadcasting rights for the 2030 FIFA World Cup in Spain and Andorra, expanding its presence in live sports.

Advertising is another key part of its growth strategy as Netflix looks to diversify revenue beyond subscriptions. Jefferies forecasts that the company’s advertising revenue could reach $7.5 billion by 2029.