Netflix faces engagement questions ahead of Q3 results

Netflix will report its third-quarter results on Tuesday, October 20, as investors look for signs that viewers are spending less time on the service.

Analysts expect revenue to rise 11.8% to $12.87bn, up from about $11.5bn a year earlier, according to LSEG data cited by Reuters. That would be Netflix’s slowest third-quarter growth in three years.

Several data sets point to weaker engagement. In the US, the rate at which users cancelled rose 16.6% from a year earlier in the third quarter, according to app data firm Apptopia. That is about twice the pace of the previous three quarters. Downloads of the Netflix app in the US and Canada also fell 20%.

Meanwhile, investment bank Jefferies estimates that members watched an average of 49 hours a month in the first half of 2026. That compares with 66 hours in the first half of 2023.

Analysts told Reuters that this summer’s FIFA World Cup and a weaker line-up of shows than last year held viewing back. The tournament was hosted by the US, Canada, and Mexico in June and July.

Competition is also growing. YouTube now accounts for nearly twice as much US viewing time as Netflix, according to Nielsen figures cited by Reuters. Short, low-cost videos made by online creators are taking time away from scripted series and films.

Netflix’s leaders have acknowledged the pressure. Co-chief executive Ted Sarandos said recently that live programming could help the company grow faster.

“Netflix is not growing as fast as I want us to,” Sarandos said, according to Reuters.

The results also follow a week of changes at the company. Netflix is cutting about 6% of its staff, around 1,000 jobs, in its largest round of layoffs in years. In addition, chief content officer Bela Bajaria is leaving after a decade and will be replaced by former Disney and Fox executive Peter Rice.

Netflix is relying on advertising to increase revenue. In January, it forecast revenue growth of 12% to 14% for 2026, with about $3bn coming from ads. Jefferies expects the company’s ad sales to reach $7.5bn in 2029.

The company has also bought the rights to broadcast the 2030 FIFA World Cup in Spain and Andorra, Reuters reported.