# Netflix Q3 Earnings Meet Wall Street, Q4 Costs from Layoffs

> Netflix's Q3 revenue matches Wall Street estimates but Q4 earnings will drop due to layoffs.
- Title: Netflix Q3 Earnings Meet Wall Street, Q4 Costs from Layoffs
- Summary: Netflix's Q3 revenue matches Wall Street estimates but Q4 earnings will drop due to layoffs. Netflix's Q3 revenue met Wall Street expectations while Q4…
- Keywords: netflix, revenue, wall street, layoffs, costs, entertainment, culture, Earnings, Meet, Wall, Street, Variety
- Source: Variety — https://variety.com/2026/tv/news/netflix-q3-2026-earnings-wall-street-layoffs-exec-firings-1236917438
- Author: Todd Spangler
- Published: 2026-10-20T20:13:23+00:00
- Read time: 1 min
- Topics: netflix, q3, revenue, wall street, layoffs, costs, q4, entertainment, culture
## Netflix Q3 Revenue Meets Wall Street Estimates
Netflix posted Q3 revenue of $12.87 billion, up 11.8% year-over-year.
## Q4 Revenue Beats Wall Street Expectations
Netflix projects Q4 revenue of $13.4 billion, an increase of 11.5%.
## Q3 Earnings Beat Wall Street
Net income came in at $3.66 billion, translating to earnings of 87 cents per share.
## Layoffs Impact Q4 Earnings
Netflix laid off 1,000 employees in a restructuring effort to reposition itself.
## Q4 Operating Margin Drops
Netflix projects a Q4 operating margin of 26.0%, including a 120 basis point negative impact from layoffs.
## Layoffs and Leadership Changes
Netflix ousted chief content officer Bela Bajaria, tapping Peter Rice to replace her.
## Q4 Earnings Will Be Crimped by Layoffs
Q4 earnings will be crimped by costs associated with mass layoffs.
## Key takeaway

Netflix's Q3 revenue met Wall Street expectations while Q4 earnings will be hurt by costs from mass layoffs.