Netflix co-CEO Sarandos says 'we could do better' after weak forecast

Netflix issued a below-consensus outlook for fourth-quarter profit and lowered its 2026 advertising revenue estimate, Business Recorder reported. The company expects net income of $2.79 billion and earnings per share of 67 cents, against analyst averages of $3.07 billion and 73 cents. Its advertising forecast is now roughly $2.7 billion, compared with about $3 billion previously.

Third-quarter revenue climbed 11.8% to $12.87 billion, while earnings per share of 87 cents exceeded the 82-cent analyst estimate. Co-CEO Ted Sarandos said Netflix would concentrate on its film and television output, following staff cuts affecting about 6% of employees and changes among senior programming executives. He also acknowledged a need for stronger execution in the US, where Antenna data showed no monthly net subscriber additions through September.