Netflix Slides to a 52-Week Low as Its Ad Business Runs "a Bit Behind" Its $3 Billion Target

Netflix shares slid 5.3% after the company reported Q3 results, closing Friday at $62—near a 52-week low—after cutting its 2026 advertising revenue target to $2.7 billion from roughly $3 billion. The quarter still delivered a clean profit beat: EPS of $0.87 topped expectations of $0.82 and operating margin rose to 34.6% from 28.2%. Revenue grew 11.8% to $12.87 billion, the slowest pace in nearly three years. Guidance for the fourth quarter showed EPS of $0.67 versus a $0.73 consensus. Netflix said ad features rolled out slower than expected, while investors also questioned engagement trends. The ad plan includes expanding a higher-tier offering to 15 more countries starting in March 2027.