Netflix Shares Fall as Reduced Full-Year Guidance Overshadows Q3 Earnings Beat

Netflix shares fell 4% to $63.54 after softer full-year guidance and engagement concerns outweighed a third-quarter earnings beat. The company posted third-quarter revenue of $12.9 billion and GAAP EPS of $0.87, topping analyst expectations of $0.82. However, Netflix projected full-year revenue of $51.1 billion, landing at the lower end of prior guidance and below Wall Street's $51.2 billion consensus. The streamer also reduced its 2026 ad revenue target to $2.7 billion from $3.0 billion and trimmed full-year free cash flow guidance to $12 billion from $12.5 billion, citing delayed ad product capabilities.