Netflix forecasts weak Q4 profit and cuts its 2026 ad sales target to $2.7B

Netflix reported its third-quarter results on October 20, forecasting a fourth-quarter profit of 67 cents per share, which falls below the 73 cents expected by Wall Street. Additionally, the streaming company reduced its 2026 ad sales target to $2.7B. Following these announcements and the weakened advertising revenue outlook, Netflix shares declined by nearly 6% in after-hours trading as investor anxiety intensified regarding the company's financial performance and future growth projections for its advertising sector.