Shares of Netflix hit a two-year low after the streamer’s Q3 2026 earnings report revealed an ongoing softening in top-line growth and a miss on advertising revenue for the full year.
\n\nThe stock was down -7% in premarket trading Wednesday, to under $64/share, a decline of nearly 30% year-to-date to the lowest point since August 2024. Netflix’s Q4 revenue guidance was slightly below Wall Street expectations, and the company said ad sales for 2026 are now expected to be $2.7 billion, $300 million lighter than previously forecast, because of the slower-than-expected rollout of “some ad product capabilities.”
\n\nSo how does Netflix recharge audience engagement (and therefore keep revenue pointed up) after a drop-off in viewing, particularly in the U.S.?
\n\nTo Netflix co-CEO Ted Sarandos, the answer is better execution on its core model — that the company needs to crank up its buffet of buzzy, must-watch TV shows and movies. Last week he dismissed content chief Bela Bajaria, who’s being replaced by Peter Rice, as part of a larger overhaul of content leadership. On the Q3 earnings call, Sarandos praised Bajaria but said “I know that we could do better.”
\n\nAhead of its Q3 earnings, Netflix also laid off 1,000…
Original source: https://variety.com/v/tv/