LOS GATOS, California — Netflix lowered its 2026 advertising-revenue forecast to about $2.7 billion from approximately $3 billion, saying some ad-product capabilities rolled out more slowly than expected.
The revised outlook appeared in the streaming company’s October 20 shareholder letter, filed with the U.S. Securities and Exchange Commission. Netflix said subscription revenue performed better than expected, but the advertising slowdown left its projected full-year revenue slightly below the midpoint of its previous range.
Netflix reported third-quarter revenue of $12.874 billion, up 11.8% from a year earlier. It now expects 2026 revenue of $51.1 billion, a 13% increase, and fourth-quarter revenue of $13.442 billion.
The company said it continues to expand its Netflix Ads Suite. During the quarter, it widened programmatic access through global connected-TV marketplace agreements and added partnerships with MercadoLibre in Latin America and Adform in Europe, the Middle East and Africa. Netflix also said it plans to introduce its advertising-supported tier in 15 additional countries in 2027, with the first launches scheduled for March.
The forecast reduction is not a report of lost revenue already booked; it is management’s updated estimate. Reuters reported that executives attributed the change to slower product deployment as Netflix competes for advertising and viewer attention with platforms including YouTube and TikTok.
Why it matters: The roughly $300 million reduction signals execution limits in one of streaming’s most closely watched advertising businesses even as Netflix expands measurement, programmatic buying and ad-tier availability.
Sources: Netflix shareholder letter filed with the SEC; Reuters.