Netflix Narrows FY26 Revenue Guidance and Issues Lower Q4 Outlook
Netflix reported Q3 revenue of $12.874 billion and EPS of 87 cents. It expects Q4 revenue of $13.442 billion and EPS of 67 cents, below the cited estimates, and now forecasts FY26 revenue of $51.1 billion versus its prior range of $51.0 billion to $51.4 billion. Shares fell 7% to $63.86 in premarket trading.
Netflix Inc. reported mixed third-quarter results on Tuesday, narrowed its FY26 sales guidance to below estimates and issued a lower fourth-quarter sales outlook. Revenue was $12.874 billion, up 12% year over year, narrowly below the $12.876 billion Street consensus estimate, according to data Pro. Earnings were 87 cents per share, above the 82-cent consensus estimate.
For the fourth quarter, Netflix forecast revenue of $13.442 billion and earnings of 67 cents per share. Street estimates were $13.517 billion and 73 cents per share, respectively. The company now expects full-year revenue of $51.1 billion, compared with its previous range of $51.0 billion to $51.4 billion. Netflix said member response to its 2026 price changes is consistent with prior adjustments and expectations.
The company said this indicates engagement—which includes the quantity, quality and variety of viewing—remains healthy and that it continues to deliver strong value to members. Netflix shares fell 7% to $63.86 in pre-market trading. Following Netflix’s earnings announcement, B of A Securities analyst Jessica Reif Ehrlich kept a Buy rating and reduced her price target from $105 to $90. Morgan Stanley’s Sean Diffley retained an Overweight rating while lowering his target from $80 to $77.
Rosenblatt’s Barton Crockett maintained a Neutral rating and cut his target from $75 to $71. Needham’s Laura Martin downgraded Netflix from Buy to Hold.