Netflix Cuts 2026 Ad Forecast and Projects Weaker Q4 Profit

Netflix reported third-quarter revenue of $12.87 billion on Tuesday, October 20, up 11.8% from a year earlier, and earnings per share of 87 cents, while lowering its 2026 advertising revenue forecast and projecting fourth-quarter profit below analysts’ expectations. The company’s quarterly earnings per share exceeded the cited analyst estimate of 82 cents, while revenue was in line with expectations. Net income rose to $3.66 billion from $2.55 billion a year earlier. Revenue growth was the slowest in nearly three years, compared with 17% in the year-earlier quarter. Netflix noted that a one-time tax charge in Brazil had affected the previous year’s profit comparison. Netflix now expects about $2.7 billion in advertising revenue for 2026, down from roughly $3 billion. Co-CEO Greg Peters attributed the revision to delays in rolling out some advertising capabilities and integrating products with partners. The company said its advertising business was growing by more than 80% this year, but was behind its earlier target of doubling annual ad revenue. For the fourth quarter, Netflix forecast revenue of about $13.4 billion, roughly 12% higher than a year earlier, and an operating...