Netflix cuts Q4 and 2026 ad revenue guidance after earnings beat
Netflix lowered its fourth-quarter revenue outlook to $13.4 billion, citing expense timing including layoff costs, and cut its 2026 ad forecast to $2.7 billion.
Netflix reported third-quarter 2026 earnings per share of 87 cents, up from 59 cents a year earlier, and lowered its guidance for the fourth quarter and for full-year advertising revenue, according to Deadline.
Third-quarter revenue came in at $12.87 billion, up 12% year over year and in line with Wall Street estimates. For the fourth quarter, the company now expects $13.4 billion, down from its earlier outlook, citing expense timing that includes costs from laying off about 1,000 workers.
Netflix also cut its 2026 advertising revenue projection to $2.7 billion from an earlier forecast of $3 billion. The company attributed the reduction to a slower than expected rollout of some ad product capabilities. Shares fell in after-hours trading following the guidance cuts.
On the content side, Netflix said non-English viewing has grown from under 10% of total viewing to more than one-third, pointing to titles including Plastic Beauty, The Secret Woman, The Perfect Lie and the Mexican production Facing El Chapo.
Pressure on the stock
The cuts land after a turbulent stretch for the company. Last week Netflix laid off about 1,000 workers, 6% of staff, its deepest cuts since 2022, and replaced content chief Bela Bajaria with Peter Rice. Its stock has fallen 40% over the past year.
Quick answers
What were Netflix's third-quarter earnings per share?
87 cents, up from 59 cents a year earlier.
How much revenue did Netflix report for the third quarter?
$12.87 billion, up 12% year over year and in line with Wall Street estimates.
What is Netflix's new 2026 advertising revenue forecast?
$2.7 billion, down from an earlier forecast of $3 billion.