Netflix Shares Drop as 2026 Ad Sales View Falls to $2.7 Billion
Updated
Updated · Deadline · Oct 20
Netflix Shares Drop as 2026 Ad Sales View Falls to $2.7 Billion
3 articles · Updated · Deadline · Oct 20
Summary
Netflix shares slid in after-hours trading after the company cut its 2026 advertising sales forecast to $2.7 billion from $3 billion and lowered fourth-quarter revenue guidance.
Q4 revenue is now projected at $13.4 billion, with Netflix citing a slightly slower-than-expected rollout of ad product capabilities and expense timing tied partly to about 1,000 layoffs.
The weaker outlook overshadowed solid third-quarter results: earnings rose to 87 cents a share from 59 cents a year earlier, while revenue climbed 12% to $12.87 billion, matching Wall Street estimates.
Management also acknowledged investor concern over slowing view-hours growth, even as it said 2026 price increases have landed as expected and engagement remains healthy.
The guidance cut lands after Netflix's deepest job reductions since 2022 and a senior leadership shake-up, underscoring pressure to revive growth in the U.S. and advertising.