Netflix reports higher Q3 profit but lowers 2026 ad revenue forecast

For the fourth quarter, Netflix projects $13.44 billion in revenue, while its full-year revenue forecast has narrowed to $51.1 billion, at the low end of its previous $51 billion to $51.4 billion range, CNBC reports. Reuters reports that the company projects fourth-quarter net income of $2.79 billion and earnings of 67 cents per share, below analyst averages of $3.07 billion and 73 cents, respectively.

Viewing growth and changes at the top

Netflix said retention remained healthy across regions and churn improved from a year earlier globally and in the U.S., according to The Desk. The company also acknowledged investor concern about growth in viewing hours and said it wants to accelerate that growth.

The results follow layoffs of about 1,000 employees, roughly 6% of Netflix’s workforce, and a change in content leadership. Chief content officer Bela Bajaria departed, Peter Rice was tapped to replace her, and film head Dan Lin also left, Variety reports. Variety says Netflix’s shareholder letter addressed the layoffs but did not explain the content-leadership overhaul. Shares fell about 5% in extended trading on Oct. 20, according to CNBC.