Netflix reports revenue of 12.9 billion (+11.8 per cent). Advertising estimates slashed by 10 per cent; forecasts prove disappointing
Netflix falls short of analysts’ expectations with lower-than-expected fourth-quarter profit forecasts
Netflix has closed the third quarter with better-than-expected earnings, but has disappointed Wall Street with a forecast for the final three months of the year that falls short of expectations.
The US streaming group reported revenue of $12.87 billion, up 11.8 per cent compared with the same period in 2025 and in line with analysts’ estimates.
Net profit rose by 44 per cent to $3.66 billion, whilst earnings per share stood at 87 cents, compared with the 82 cents forecast by the market.
The outlook is being weighed down by the forecasts for the fourth quarter: Netflix expects revenue of $13.44 billion, which is below the $13.5 billion anticipated by analysts, according to Visible Alpha. The forecast net profit of $2.79 billion is also below the $3.07 billion estimated by the market, whilst earnings per share are expected to be 67 cents, compared with the consensus estimate of 73 cents.
Netflix has also reduced its advertising revenue forecast for 2026 by 10 per cent, bringing it down from around $3 billion to $2.7 billion. The company attributed the revision to a slower-than-expected roll-out of certain features on its advertising platform. Costs associated with staff reductions are also affecting the outlook for profitability in the fourth quarter.
