Netflix beat on profit, but trimmed its 2026 ad revenue forecast by about $300 million
The headline in Netflix's third-quarter letter was a jump in earnings. The line that matters for its ad business is a smaller forecast, and a slower rollout is the stated reason.
Netflix reported third-quarter results on Oct. 20, 2026, and the top-line story was a good one. According to the company's shareholder letter, revenue grew 12% year over year to $12.9 billion (11% on a currency-neutral basis), in line with its own forecast. Operating margin came in at 34.6%, up from 28.2% in the third quarter of 2025, and diluted earnings per share were $0.87 versus $0.59 a year earlier.
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