Netflix Q3 Revenue Hits $12.87B, But Ad Revenue Forecast Cut to $2.7B
NFLX is trading near its 52-week low of $65.08 (0.6% below the low) on elevated volume (2.0× avg).
Summary
Netflix delivered Q3 revenue of $12.874B (+12% YoY), net income of $3.664B, EPS of $0.87 and a 34.6% operating margin, with free cash flow of about $2.884B. The quarter included a $4.8B buyback — roughly 63.9M shares, its largest quarterly repurchase — leaving $15.3B gross debt against $8.2B cash. The problem is the ad business: management cut 2026 ad revenue to about $2.7B from roughly $3.0B, citing a slower ad product rollout, and guided Q4 revenue to about $13.44B with EPS of $0.67. That ad shortfall lands alongside the already-announced 1,000 job cuts (6% of staff) and the CCO swap to Peter Rice, reinforcing the margin pressure story. The stock is trading near its 52-week low, so the market is already skeptical; the ad cut is the detail that keeps pressure on.
At the time of this announcement, NFLX was trading at $64.72 on NASDAQ in the Technology sector, with a market capitalization of approximately $286B. The 52-week trading range was $65.08 to $124.86. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.