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Netflix’s stock just collapsed to a 2-year low: Is the streaming giant’s ad business in trouble?

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Netflix’s stock just collapsed to a 2-year low: Is the streaming giant’s ad business in trouble?

Shares in Netflix Inc. (Nasdaq: NFLX) have fallen to a more than a two-year low after the streaming giant posted its Q3 2026 results yesterday.

Despite hitting Wall Street’s projected revenue target of nearly $12.9 billion for the quarter, an update on the company’s increasingly critical ad business dampened investor optimism, sinking the stock with it. Here’s what you need to know.

Yesterday, Netflix announced its results for its third quarter of fiscal 2026. Unfortunately for the company, those results—and Netflix’s guidance—were somewhat of a mixed bag.

There was good news: Revenue for the quarter totaled $12.87 billion, representing 11.8% year-over-year growth.

The company’s diluted earnings per share also reached 87 cents. As noted by CNBC, this means Netflix hit the revenue target investors were expecting and exceeded EPS expectations by five cents per share.

However, there was also plenty of news that gave investors pause—and that has caused the stock to drop significantly in premarket trading today.

For the fourth quarter, Netflix said it expects revenue to grow by about 11.5% to $13.44 billion. Double-digit growth is nothing to sneeze at, but unfortunately for Netflix, that revenue forecast comes in under the $13.51 billion that Wall Street was expecting, notes TipRanks. 

1 billion. 4 billion range Netflix previously forecast for fiscal 2026.



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