Netflix Cuts 2026 Ad Forecast and Gives Weaker Q4 Outlook

Netflix reported third-quarter revenue of $12.87 billion, up 11.8% from a year earlier, and earnings per share of 87 cents, topping analyst expectations. The results, released Tuesday, came with a reduced advertising forecast for 2026 and fourth-quarter guidance below analysts’ prior revenue estimates, as the company works to address slowing growth and viewing engagement. Revenue matched the average analyst estimate of $12.87 billion, while earnings per share exceeded the expected 82 cents. Net income rose to $3.66 billion from $2.55 billion a year earlier. Revenue growth was Netflix’s slowest in three years, compared with 17% growth in the same quarter a year ago. The company said the prior-year profit comparison was affected by a one-time tax charge in Brazil. Netflix lowered its 2026 advertising revenue forecast to about $2.7 billion from roughly $3 billion, attributing the change to a slower-than-expected rollout of some advertising product capabilities. It expects full-year revenue of about $51.1 billion, near the lower end of its previous range of $51 billion to $51.4 billion. For the fourth quarter, Netflix forecast revenue of about $13.4 billion, an increase of roughly...