# Netflix Shares Fall 5.3% After Q3 Results; 2026 Ad Outlook Cut to $2.7 Billion

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/38299
Published: 2026-10-22T20:09:28.000Z
Updated: 2026-10-22T20:09:28.000Z
Section: Business

> The revised estimate is about $300 million below Netflix’s earlier target. The change reflects a slightly slower-than-expected rollout of some advertising product capabilities.

Netflix shares fell 5.3% to $65.04 on Wednesday, Oct. 21, after the company released third-quarter results the day before. Netflix also lowered its 2026 advertising revenue target by about $300 million.

The revised target is about $2.7 billion, down from roughly $3 billion previously. The change reflects a slightly slower-than-expected rollout of some advertising product capabilities.

Third-quarter revenue was $12.874 billion, up 11.8% from a year earlier. Net income totaled $3.664 billion, and diluted earnings per share were $0.87. Operating margin rose to 34.6%, from 28.2% a year earlier.

For the fourth quarter, Netflix forecast revenue of $13.442 billion, an 11.5% year-over-year increase, and diluted earnings per share of $0.67. Its full-year outlook included $51.1 billion in revenue and a 31.5% operating margin.