Shares fell 4.4% following the report, extending a year-to-date decline of 25% that has erased approximately $135B in market value. To stabilize its trajectory, the company has cut about 1,000 jobs and appointed Peter Rice as chief content officer. Netflix’s Q3 operating income rose 37% year over year to $4.46B, and it now forecasts full-year 2026 revenue of $51.1B with advertising revenue contributing roughly $2.7B.
Tuesday, October 20, 2026
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Netflix Shares Fall 4.4% on Weak Q4 Revenue and Profit Forecast
Earnings3 hours ago
Earnings per share for the third quarter reached $0.87, topping the $0.82 projection from Wall Street analysts, on revenue of $12.87B. Despite the beat, Netflix provided a fourth-quarter outlook that missed expectations for revenue at $13.44B versus a $13.51B estimate and earnings per share of $0.67 against a $0.73 forecast. The company projected a Q4 operating margin of 26%, which fell short of the 27.6% target predicted by analysts.
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