Netflix reported strong financial results for the third quarter despite recent organizational upheavals, including layoffs of 1,000 employees and the departure of its chief content officer and two senior film executives. The streaming giant posted revenues of nearly $12.9 billion, marking a 12 percent increase from the same period last year, though this represented its lowest quarterly revenue growth rate in three years. Net income rose sharply by 44 percent to approximately $3.7 billion.

For the full year, Netflix projects revenue growth of 13 percent, aligning with previous forecasts. However, following the earnings release, the company’s shares declined more than 5 percent in after-hours trading.

Netflix acknowledged concerns among investors regarding the slowing growth in viewership time, particularly in its key markets of the United States and Canada. While revenue in those regions increased by 11 percent over the quarter, this pace was down from 17 percent during the previous year.

Co-chief executive Ted Sarandos addressed the issue in an investor call, emphasizing that the company does not see a need for a fundamental change in strategy. Instead, he pointed to the importance of improved execution in the U.S. market. Sarandos stressed that although Netflix remains the largest paid streaming service globally with 325 million subscribers, its growth has not met the expectations of company leadership or investors.

The company’s earnings report underscores both its continued profitability and the challenges it faces in sustaining momentum in a competitive streaming landscape. Netflix’s recent management changes and the focus on optimizing performance in mature markets suggest an effort to address these hurdles while maintaining its leading position in the industry.