Netflix Shares Fall on Weak Fourth-Quarter Outlook

Netflix shares fell about 5% to 6% after the company reported third-quarter 2026 earnings per share of 87 cents, above estimates, and revenue of roughly $12.9 billion, around expectations. Investors reacted to its fourth-quarter revenue forecast of about $13.4 billion, below analyst expectations and signaling a further slowdown in sales growth. Netflix said advertising revenue is tracking about $300 million below its expectations and forecast a 26% operating margin for the quarter, partly reflecting costs tied to recent layoffs. The outlook adds to concerns about slowing viewer engagement amid competition from YouTube, short-form video and rival streaming services. Netflix has cut roughly 1,000 jobs and changed its content leadership.