Netflix forecasts weak Q4 profit and cuts its 2026 ad sales target to $2.7B

Netflix expects lower fourth-quarter profit than Wall Street forecast and has cut its annual advertising revenue target. The streaming company reported its third-quarter results on Tuesday, October 20, and its shares fell almost 6% in after-hours trading.

Netflix forecast earnings of 67 cents a share for the three months to December, below the 73 cents analysts had expected, Reuters reported. It also predicted net income of $2.79bn, against estimates of $3.07bn.

The outlook came a week after Netflix laid off…