Netflix stock gains 2.60% since latest report as ad test remains

Netflix reported stronger-than-expected third-quarter profit on Tuesday, October 20, for the period ended September 30, according to CNBC. The new Lang & Schwarz quote is 58.76 euros at 16:30 CET on Wednesday, November 4, 2.60 percent above the 57.27-euro quote in the latest report at 13:18 CET the same day.

Profit beat meets ad slowdown

Netflix posted third-quarter diluted earnings per share of 0.87 US dollars, ahead of the 0.82 US dollar analyst estimate, while revenue reached 12.87 billion US dollars and matched expectations. Net income rose to 3.66 billion US dollars from 2.55 billion US dollars a year earlier. The company said expense timing contributed to the year-over-year profit increase.

The main forward-looking setback is advertising. Netflix now expects 2026 advertising revenue of about 2.7 billion US dollars, below its earlier forecast of roughly 3 billion US dollars. Co-CEO Greg Peters said the business was growing strongly but remained behind its aggressive target because some advertising capabilities rolled out more slowly than planned.

Guidance raises execution pressure

Netflix expects fourth-quarter revenue of 13.44 billion US dollars, representing growth of more than 11 percent. Its 2026 revenue forecast was narrowed to 51.1 billion US dollars, the low end of the previous 51.0 billion to 51.4 billion US dollar range. The company also acknowledged investor concerns about viewing-hour growth and said it would focus on entertainment value, technology and monetization.

The company is reducing its workforce by about 6 percent, or roughly 1,000 positions. Netflix expects the cuts to reduce fourth-quarter operating margin by about 120 basis points. Former Disney executive Peter Rice has been selected as chief content officer after Bela Bajaria left the role, adding a leadership transition to the operating agenda.

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Further updates will center on advertising execution, viewing trends and the next earnings outlook. More news and analyses on Netflix stock will track those developments.