The stock of Netflix (NFLX) is down 6% after the streaming giant reported mixed financial results and lowered its forward guidance.
The company announced earnings per share (EPS) of $0.87 U.S., which topped the $0.82 U.S. forecast on Wall Street.
Revenue in the period totaled $12.87 billion U.S., which was inline with analysts’ consensus expectations. Sales were up 12% from a year earlier.
Management said that memberships grew in the quarter and that Netflix benefitted from increased subscription prices, without providing specific details.
Looking ahead, Netflix forecasts that revenue in the current fourth quarter will rise more than 11% to $13.44 billion U.S., driven by growth in memberships and advertising revenue.
However, the company lowered its full-year revenue forecast, saying it now expects sales to come in at $51.1 billion U.S.
The new full-year guidance is at the low end of the previous range of $51 billion U.S. to $51.4 billion U.S. and below Wall Street’s expectations of $51.2 billion U.S.
The company also lowered its full-year revenue guidance for its advertising business. Netflix said it now expects 2026 ad revenue of $2.7 billion U.S., down from $3 billion U.S. previously.
Management said the lower ad revenue guidance is due to a slower-than-expected rollout of some advertising products.
Hours before its latest print, Netflix announced that it would expand its ad-supported streaming tiers to 15 new markets worldwide in 2027, including Ireland and New Zealand.
In recent weeks, Netflix has announced that it is laying off 6% of its workforce, or 1,000 workers, and parted ways with several senior executive, including Chief Content Officer Bela Bajaria.
Prior to today (Oct. 21), Netflix’s stock has down 45% over the last 12 months and trading at $68.69 U.S. per share.
