Netflix Slashes 2026 Ad Revenue Forecast to $2.7B as Growth Hits 3-Year Low
NFLX is trading near its 52-week low of $65.08 (2.0% above the low).
Summary
Netflix cut its 2026 advertising revenue forecast to about $2.7B from roughly $3B, citing a slower rollout of ad products. That lands alongside Q3 revenue of $12.87B, up 12% but the slowest growth in nearly three years, and a Q4 revenue guide of $13.4B at a 26% operating margin. Q3 profit jumped 44% as revenues rose. The ad business was supposed to be the next leg of growth, so a $300M trim to that target undercuts the story just as the stock sits near a 52-week low. This follows a rough stretch: ~1,000 job cuts (6% of staff) on Oct 14-15, a narrowed 2026 revenue outlook, and a chief content officer swap to Peter Rice effective Oct 26. Full-year revenue is still guided to $51.1B (+13%) with a 31.5% operating margin, so the core subscription engine is holding — the miss is concentrated in ads.
At the time of this announcement, NFLX was trading at $66.39 on NASDAQ in the Trade & Services 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: Reuters.