Business · Updated 21 Oct, 07:35 am IST
Netflix issues weak fourth-quarter profit forecast, shares fall after hours
Why it matters for readers: It explains why a well-known streaming service is cutting its ad outlook and why its stock reacted negatively.
- Netflix forecast fourth-quarter net income of $2.79 billion and EPS of $0.67, below analyst expectations.1
- Shares fell more than 5% to $68.69 in after-hours trading after the forecast was released.1
- The company reduced its 2026 advertising revenue forecast to about $2.7 billion from roughly $3 billion, blaming some ad product rollouts that were slightly slower than expected.1
- Netflix reported third-quarter revenue growth of 11.8% to $12.87 billion, the slowest increase in nearly three years.1
- Executives noted increasing competition for viewers from platforms such as YouTube and TikTok and said the company is expanding into games, podcasts and live events.1
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