Netflix Strategy Unchanged, Sarandos Says as Shares Fall 6%
Co-CEO Ted Sarandos told analysts the business flywheel is working, but softer 2026 ad revenue guidance sent Netflix shares down after the call.
Netflix Co-CEO Ted Sarandos said the company's strategy is unchanged and that its business flywheel is working, speaking on the company's quarterly earnings call on October 20, 2026, according to Deadline.
Sarandos said the U.S. market needs better execution, while content in other territories is largely working. Peter Rice, Netflix's new chief content officer, will lead that content execution effort, and Sarandos said to expect more local programming deals like the one with French network TF1.
On the numbers, Netflix reported that third-quarter churn improved year on year both globally and in the U.S., beating forecast. CFO Spencer Neumann said softer-than-anticipated ad revenue guidance for full-year 2026 hurt the shares, and Netflix stock fell 6% after the close.
Films and theatrical plans
Netflix plans to release 30 films theatrically this year, ranging from platform releases to wide family films. The company began publicly reporting box office with La Bola Negra over the past weekend, and Sarandos said it opened well in limited release.
The call came after a year in which Netflix stock had been bid down over 40%, alongside a bid for Warner Bros., large job cuts and changes in its C-suite, the outlet reported.
Quick answers
Why did Netflix shares fall after the earnings call?
CFO Spencer Neumann said softer-than-anticipated ad revenue guidance for full-year 2026 hurt the shares, and the stock fell 6% after the close.
How many Netflix films are getting a theatrical release this year?
Netflix plans to release 30 films theatrically this year, ranging from platform releases to wide family films.
What did Ted Sarandos say about the company's strategy?
Sarandos said the strategy is unchanged and the business flywheel is working, though he said the U.S. market needs better execution.