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Netflix stock sinks after streamer's Q3 earnings, Q4 revenue forecast falls short of estimates

Netflix shares tumbled to a two-year low after the streaming giant issued a fourth-quarter revenue forecast that fell short of Wall Street estimates. The drop occurred even though the company posted solid third-quarter results and expanded its margins significantly. Investors reacted negatively to a broader slowdown in top-line growth and a miss on advertising revenue for 2026. Co-CEO Ted Sarandos stated that two specific problems are driving the stock slide, excluding YouTube as a factor. Wall Street analysts responded to the weak outlook by lowering price targets.

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  • ✓ Netflix shares fell to a two-year low after the company announced its third-quarter earnings and a fourth-quarter revenue forecast that missed estimates.
  • ✓ The company lowered its guidance for fourth-quarter 2026 revenue and full-year advertising sales.
  • ✓ Wall Street analysts lowered their price targets following the earnings report and weak outlook.
🛡️ Source Corroboration: 10 independent reporting domains (100% confidence) ⏱ Read time: ~2 min

What changed

Netflix lowered its fourth-quarter 2026 revenue guidance and full-year advertising sales expectations, triggering a sharp stock sell-off.

Live updates

  1. Netflix Stock Sinks to Two-Year Low on Weak Q4 Forecast

    Netflix shares tumbled to a two-year low after the streaming giant issued a fourth-quarter revenue forecast that fell short of Wall Street estimates. The drop occurred even though the company posted solid third-quarter results and expanded its margins significantly. Investors reacted negatively to a broader slowdown in top-line growth and a miss on advertising revenue for 2026. Co-CEO Ted Sarandos stated that two specific problems are driving the stock slide, excluding YouTube as a factor. Wall Street analysts responded to the weak outlook by lowering price targets.

    Why it matters

    The streaming company is currently overhauling its programming units to combat decelerating revenue growth. Despite beating third-quarter earnings estimates and buying back a record amount of stock, the weaker fourth-quarter outlook deepened market worries about overall viewership and ad sales. Netflix is down 29 percent for the year as it tries to prove it can successfully execute its advertising business model.

    What is confirmed

    • Netflix shares fell to a two-year low after the company announced its third-quarter earnings and a fourth-quarter revenue forecast that missed estimates.
    • The company lowered its guidance for fourth-quarter 2026 revenue and full-year advertising sales.
    • Wall Street analysts lowered their price targets following the earnings report and weak outlook.

    Still unconfirmed

    • Co-CEO Ted Sarandos claims there are two specific problems behind the stock slide, and they are not YouTube.

    What to watch next

    • Execution and performance of the overhauled programming units.
    • Future updates on Netflix advertising sales and whether the company can revive revenue growth.
    Sources used for this update (12)
    1. CNBC — Here's what to expect when Netflix reports earnings after the bell
    2. WSJ — Netflix Revenue Growth Slows as It Overhauls Programming Units
    3. Yahoo Finance — Netflix stock sinks after announcing Q3 earnings, Q4 revenue forecast falls short of estimates
    4. Yahoo Finance — Netflix has 2 problems behind the stock slide — and they aren't YouTube, co-CEO Ted Sarandos says
    5. Variety — Netflix Stock Deflates to Two-Year Low. What Will It Take to Revive Revenue Growth?
    6. Reuters — Netflix slides as weak outlook deepens worries on viewership, revenue growth
    7. variety.com — Netflix Stock Falls to Two-Year Low After Q3 2026 ... - Variety
    8. deadline.com — Netflix Stock Falls Despite Solid Q3 Results On Lowered Q4 ...
    9. finance.yahoo.com — Netflix stock sinks as Wall Street lowers price targets ...
    10. 247wallst.com — Netflix Is Now Down 29% This Year: Is NFLX Stock Hopeless or Ready for a Rebound?
    11. www.hollywoodreporter.com — Netflix Q3 Earnings Beat Estimates, But 2026 Ad Sales Lag
    12. finance.yahoo.com — Netflix Stock Hits 26-Month Low, But Revenue Tells a ...
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