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Netflix Stock Falls 5% After Weak Q4 Guidance
Why is Netflix stock down today?
Netflix (NFLX) stock fell about 5% to $65.10 on Wednesday, a two-year low, after weak earnings guidance showed slower fourth-quarter sales and a lower 2026 ad target.
Key numbers
| Q4 revenue forecast | $13.44Bvs $13.51B expected |
|---|---|
| 2026 ad revenue target | $2.7Bfrom $3B |
| Q4 earnings per share forecast | $0.67vs $0.73 expected |
| Q3 revenue | $12.87B+11.8% YoY, slowest in nearly 3 years |
| NFLX share price | $65.10-5.2% today; low $64.10 |
| 2026 so far | -26%sources range -25% to -27% |
What happened
Netflix (NFLX) stock fell about 5% to $65.10 on Wednesday, a two-year low, after weak earnings guidance showed slower fourth-quarter sales and a lower 2026 ad target. Netflix told investors it expects sales of $13.44 billion in the last three months of the year, just under the $13.51 billion analysts expected. It also cut its 2026 advertising sales goal to $2.7 billion from $3 billion, blaming a slower rollout of some ad tools. Its July–September results were fine: sales of $12.87 billion rose 11.8%, the slowest growth in nearly three years.
Why it matters
Netflix is one of the world's biggest streaming companies, so a weaker outlook raises doubts about how fast it can keep growing. Advertising was meant to become a new source of income beyond monthly subscriptions, and the lower target suggests that is taking longer than planned. The stock is now down about 26% this year and roughly 48% from its June 2025 peak, while Disney is up about 2%.
Who this affects
- MarketbearishMedium impact
- Investors in streaming and media stocks face sharper growth doubts.
- CompanybearishHigh impact
- Netflix shareholders lost about $13.4B in market value Wednesday.
- CompetitorsneutralLow impact
- Disney and Roku slipped about 1%, far less than Netflix.
- IndustrybearishMedium impact
- Slower ad rollout shows streaming advertising takes time to build.
Netflix vs Disney, Roku
How we got here
Netflix reports Q3 results after the market closes and issues weaker Q4 guidance.
Shares hit a day low of $64.10, a two-year low, in Wednesday trading.
UBS cuts its Netflix price target to $110 from $115; Bernstein cuts to $80.
Needham downgrades Netflix to Hold from Buy.
What to watch
- Netflix fourth-quarter results, including whether ad sales reach the lowered $2.7B 2026 target.Q4 2026
- Netflix's forecast 26% operating margin for Q4, which includes costs from job cuts.Q4 2026
- Whether more analysts trim targets after more than 20 brokerages already did.2026-10-22
Educational content only. Not investment advice.
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