Netflix Q3 profit beats forecasts but shares fall on weak outlook and ad cuts

Briefing by News4U · First published 2026-10-21 06:55:37 UTC

Netflix posted Q3 revenue of $12.87 billion and EPS of 87 cents, but lowered its 2026 ad forecast and Q4 profit guidance, sending shares down nearly 6%.

Netflix reported third-quarter revenue of $12.87 billion, up 11.8%, and EPS of 87 cents, above the 82-cent forecast, but shares fell nearly 6% after the company cut its full-year ad forecast to $2.7 billion and issued weaker Q4 profit guidance. [1] [2] [3] [4]

Co-CEO Ted Sarandos said the company could do better and plans to refocus on quality programming after replacing two top programming executives and laying off about 1,000 staff, or 6% of its workforce. [2] [3] [4]

Sources

1. Netflix Revenue Growth Slows as It Overhauls Programming Units

   WSJ Business · 2026-10-20 20:01:00 UTC · Summary only

2. Netflix posts higher Q3 profit but revenue growth worries pull shares lower

   Japan Today Business · 2026-10-20 21:42:30 UTC · Summary only

3. Netflix shares drop on slowing engagement and revenue growth

   Euronews Business · 2026-10-21 05:55:06 UTC · Summary only

4. Netflix says 'could do better' after weak forecast

   RTÉ Business · 2026-10-21 06:41:29 UTC · Full text

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