Netflix Cuts 2026 Ad Revenue Forecast to $2.7 Billion, Q4 Revenue Outlook Misses Estimates

Netflix lowered its full-year ad revenue forecast to $2.7 billion from a prior $3 billion on Tuesday, citing a slower-than-expected rollout of some ad product capabilities, and guided fourth-quarter revenue to $13.4 billion, up 12% year over year. Shares fell 5% in after-hours trading after closing at $68.69, down about 2% ahead of the results. The streaming giant reported third-quarter revenue of $12.874 billion, up 12% and slightly above analyst expectations, with net income of $3.7 billion, up 44% from a year earlier, and earnings per share of $0.87 versus the $0.82 FactSet consensus. Full-year revenue is now projected at $51.1 billion. The guidance follows a turbulent stretch: Netflix cut about 1,000 employees, roughly 6% of its workforce, named former Disney executive Peter Rice chief content officer replacing Bela Bajaria, and announced the exit of film chief Dan Lin. The stock has fallen 44% over the past year amid concerns about growth and competition from YouTube, which captured 14.2% of U.S. TV viewing time in July versus Netflix's 7.8%, according to Nielsen.