Netflix’s once lightning fast growth is slowing down — with the streaming giant posting its weakest revenue gains in years Tuesday as it scrambles to keep viewers glued to their screens while slashing jobs and shaking up its top ranks.

The company reported third-quarter revenue of $12.9 billion, up 12% from the year-ago period but marking its lowest quarterly-revenue percentage growth in three years. 

Netflix issued a weaker-than-expected forecast for fourth-quarter profiit, days after the streaming pioneer laid off 6% of its workforce and replaced two of its top programming executives. Getty Images

Quarterly net income totalled $3.66 billion for the quarter, a 44% increase from the same period a year earlier. 

Netflix’s stock fell nearly 6% in after-hours trading.

The streamer recently underwent steep cost cutting of 6% of its workforce, or around 1,000 jobs.

It also shockingly parted ways with its content chief Bela Bajaria – who green-lit hits like “Bridgerton,” “Squid Game” and “Stranger Things” – as well as its film unit chief, Dan Lin.

The departures marked acknowledgement that the company’s programming has been struggling. 

Netflix named former Disney and Fox exec Peter Rice as chief content officer, signaling a strategic shift that will include a bigger push into film and TV programming.

Wall Street analysts have questioned how Netflix, led by co-CEO Ted Sarandos, will kick-start growth. REUTERS

In recent months, investors have been increasingly worried about Netflix’s ability to grow since its failed bid to acquire Warner Bros. Discovery’s movie and TV studios and streamer HBO Max. As a result, Netflix’s stock has plummeted more than 40% over the past year.

“We know there’s some investor concern about view hours growth,” the company wrote in a letter to shareholders Tuesday. 

The firm added that customers’ response to its price increases this year were in line with its expectations, calling that an indication that engagement “remains healthy.”

“But we do seek to accelerate growth in view hours as well, and we’re confident we’ll do that,” the company said.

Netflix said it expects full-year revenue for 2026 to total $51.1 billion, a 13% increase year over year. Netflix previously said yearly revenue was expected to increase 13% to 14%. 

Part of Netflix’s problem is that customers are spending less time watching programming on its platform.

The Los Gatos, Calif.-based company revised its 2026 revenue outlook partially due to slower-than-expected rollout of some of its products for advertisers. It now expects $2.7 billion in ad revenue this year, versus the roughly $3 billion it previously projected.

 Netflix noted that subscription revenue growth had outperformed its expectations, however.