Netflix Q3 EPS 87 cents beats, revenue $12.87B in line; 2026 ad revenue outlook cut to about $2.7B

Netflix earned 87 cents a share in the third quarter, ahead of the 82 cents analysts expected, on revenue of $12.87 billion, up almost 12% and in line with estimates. It guided fourth-quarter revenue to $13.44 billion and EPS to 67 cents, below the roughly 73 cents analysts expected, and narrowed its 2026 revenue forecast to $51.1 billion, the low end of its prior range. It also lowered its 2026 advertising revenue forecast to about $2.7 billion from roughly $3 billion, citing a slower rollout of some ad products. Shares fell about 6% in extended trading.

• Q3 EPS $0.87 vs $0.82 expected; revenue $12.87B, +12% y/y
• Q4 guide: revenue $13.44B, EPS $0.67 vs about $0.73 expected
• 2026 revenue forecast narrowed to $51.1B; 2026 ad revenue cut to about $2.7B from about $3B
• Recent layoffs expected to cut Q4 operating margin by about 120 basis points