Netflix Shares Fall After Streaming Giant Cuts Ad Forecast and Issues Softer Profit Outlook
What Happened
Netflix shares fell about 5-6% after the company issued weaker-than-expected fourth-quarter profit guidance and reduced its 2026 advertising revenue forecast to roughly $2.7 billion from about $3 billion. The streamer reported third-quarter revenue of $12.87 billion, up 11.8% year-on-year, but that marked its slowest revenue growth rate in nearly three years. Company executives cited slower-than-expected rollout of some advertising capabilities.
Key Takeaways
The results highlight investor concerns about slowing engagement and revenue growth at Netflix as it expands its advertising business. The revised ad forecast and softer profit outlook overshadowed solid quarterly earnings and reinforced scrutiny of the company’s long-term growth trajectory.