Netflix Inc. (NASDAQ:NFLX) says membership gains, pricing and advertising could sustain double-digit revenue growth into 2027, despite slower-than-desired viewing growth.
During the company’s third-quarter earnings call on Wednesday, Spencer Neumann, Netflix’s group CFO, said that although viewing hours have not increased as rapidly as management would prefer, stronger engagement would add to Netflix’s existing revenue momentum.
“Even with modest view hour growth….we’re delivering that increasing value to our members across quality, quantity, and variety of viewing with a steady drumbeat of big hits in most regions,” said the CFO. He pointed to India, where a strong content lineup helped generate nearly 20% revenue growth, as an example of regional results supporting Netflix’s broader business model.
Neumann said the three revenue drivers are supporting Netflix’s 2026 performance and should continue contributing to growth in 2027.
“They’re working and they’re contributing. That’s member growth, pricing, and ads,” he said.
Netflix has not yet released full-year 2027 guidance. Neumann said the company expects to provide that outlook with its fourth-quarter results as the company looks to sustain its goals for “double-digit” revenue growth, margin expansion and higher free cash flow.
Neumann said that the “great thing about our model is that stability of our growth engine.” He added, “We’re not overly dependent on any kind of one title nor kind of outsized performance by any one region to deliver healthy growth.”
Investor Concerns Mount Over Netflix Engagement
Netflix’s outlook follows mounting investor concerns about engagement and growth. The company’s third-quarter results, released on Tuesday, included an earnings beat, but shares slid as investors focused on weaker fourth-quarter guidance.
Social Capital founder Chamath Palihapitiya said that he watches YouTube daily while describing Netflix as a "dormant subscription." He argued that YouTube benefits from lower content creation costs, while Netflix has accumulated $14 billion in debt to finance its content library. He questioned whether Netflix’s debt-funded content strategy reflects a mismatch between assets and liabilities, adding that time will tell whether the approach proves sustainable.
Last week, LightShed Partners co-founder Rich Greenfield said that investors may underestimate Netflix’s engagement advantage because rival streaming services generally do not disclose usage statistics. However, he acknowledged that Netflix wants to improve viewing engagement, arguing that streaming is fundamentally an engagement-driven business.
Greenfield said Netflix’s push into video podcasts and efforts to recruit top YouTube creators could drive growth next year, as many deals have yet to launch. He stressed that talent will be key to the strategy’s success.
Benzinga’s Edge Rankings place Netflix in the 88th percentile for quality and the 77th percentile for growth, reflecting its strong performance in both areas. Benzinga’s screener allows you to compare NFLX’s performance with its peers.
NFLX Price Action: Year-to-date, Netflix stock declined 26.74%, as per Benzinga Pro. In Wednesday’s pre-market session, the stock was 6.42% lower at $64.28.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
