Netflix Lowers 2026 Free Cash Flow and Ad Revenue Guidance
Netflix cut 2026 free cash flow guidance to $12.0 billion from $12.5 billion and its ad revenue forecast to $2.7 billion from $3 billion. It repurchased 63.9 million shares for $4.8 billion in the third quarter.
Netflix repurchased 63.9 million shares for $4.8 billion in a record buyback program during the third quarter of 2026. The company lowered its 2026 free cash flow forecast to $12.0 billion from $12.5 billion, citing a one-time real estate transaction. Netflix also cut its 2026 ad revenue forecast to $2.7 billion from an initial $3 billion, citing a slower-than-anticipated rollout of certain ad product features. Management said the ads business is growing by over 80% year-over-year and confirmed plans to launch the ad tier in 15 additional countries in 2027.