Netflix said member churn improved from a year earlier in the third quarter as higher prices and more members lifted revenue, amid investor concerns about growth in viewing hours.
The streaming company posted $12.87 billion in revenue, up 11.8% from $11.51 billion a year earlier. Netflix reported third-quarter net income of $3.66 billion, compared with $2.55 billion a year earlier. Diluted earnings per share were 87 cents.
Netflix said membership gains and higher subscription prices accounted for most of the sales increase. Advertising revenue and favorable exchange rates also helped. The company said retention remained strong across its regions and that churn improved year over year worldwide and in the United States. Churn was also better than Netflix had forecast.
The company said customers’ response to its 2026 price increases matched its expectations and resembled responses to earlier increases. Netflix cited that response in defending engagement, while acknowledging investors’ concerns about growth in hours watched. In India, viewing hours rose 24% from a year earlier, it said.
Before the results, Apptopia estimated a rise in U.S. app-user churn. Its measure counts users who stop opening the app for 30 days after using it during the previous 30 days. It does not count cancellations of paid memberships and measures a different behavior from the churn Netflix described.
Netflix lowered its 2026 advertising revenue forecast to about $2.7 billion from about $3 billion, citing a slower rollout of some advertising features. Its earlier projection had put advertising revenue at roughly twice the prior year’s level.
The company narrowed its full-year revenue forecast to $51.1 billion from a previous range of $51 billion to $51.4 billion. It forecast $13.44 billion in revenue for the fourth quarter.
