# Netflix Shares Fall 5.2% at Midday After Ad Forecast Cut By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/36861 Published: 2026-10-21T17:09:45.000Z Updated: 2026-10-21T17:09:45.000Z Section: Investing > Third-quarter earnings beat estimates, but Netflix’s fourth-quarter revenue forecast fell below analyst expectations. Netflix shares were down 5.2% at 12:40 p.m. ET (16:40 UTC) Wednesday, Oct. 21, following an earnings beat, a lower advertising forecast and fourth-quarter guidance below analyst expectations. The stock had fallen about 6% in premarket trading. For the quarter ended Sept. 30, Netflix earned $0.87 per diluted share, above the $0.82 analysts expected. Revenue rose 11.8% from a year earlier to $12.874 billion, roughly matching estimates. Operating margin rose to 34.6% from 28.2% a year earlier. The timing of expenses helped Netflix exceed its operating-margin forecast. Netflix lowered its [2026 advertising revenue forecast]() to about $2.7 billion from approximately $3 billion. The revision reflects a slightly slower-than-expected rollout of some advertising product capabilities. Membership growth, pricing and advertising all contributed to third-quarter revenue growth. For the fourth quarter, Netflix projected $13.442 billion in revenue, below a $13.51 billion analyst estimate, and earnings of $0.67 per share. Its full-year revenue forecast of $51.1 billion is near the low end of its earlier $51 billion to $51.4 billion range. The company also expects a 26.0% operating margin in the fourth quarter. ## Links in this article - [2026 advertising revenue forecast](https://www.tokenpost.com/news/business/35991)