Netflix reported revenue of $12.9 billion and net income of $3.7 billion for the third quarter of 2026, while changing its management, reducing its workforce by approximately 6%, and revising down its outlook for advertising revenue and free cash flow. Management changes are also under way, including the appointment of Peter Rice as chief content officer.
Netflix announced revenue of $12.9 billion and net income of $3.7 billion for the third quarter of 2026. It also revised down its outlook for advertising revenue and free cash flow, and announced management changes and a workforce reduction of approximately 6%. This highlighted a situation in which content-related decision-making, execution of its advertising strategy and cost management are closely linked to earnings trends.
At the center of the news was the appointment of Peter Rice as chief content officer (CCO). This is expected to reshape authority over the allocation of a content budget worth billions, with the alignment of release cycles, viewing data and advertising demand seen as factors that will affect future performance.