Netflix Shares Slide After Hours on Weak Fourth-Quarter Revenue Guidance
Netflix beat third-quarter profit forecasts, but its soft revenue outlook for the fourth quarter sent shares lower in after-hours trading, according to Stocktwits.
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what happened
Netflix reported third-quarter earnings on Tuesday that topped Wall Street expectations, with earnings of $0.87 a share against forecasts of $0.82. Revenue of $12.9 billion matched analyst estimates.
Even so, the stock fell 5% in after-hours trading, and at one point the decline reached 7%, Stocktwits reported. The main driver was guidance: the company expects fourth-quarter revenue of $13.4 billion, below the $13.5 billion consensus, which would extend the slowdown in sales growth to a fourth straight period.
Netflix also warned that severance and restructuring costs tied to its recent layoffs will reduce the operating margin, which it projects at 26%.
why it matters
The report highlights pressure on Netflix's growth as it cuts about 1,000 jobs, replaces its chief content officer and competes with other streaming services. The shares are down 27% year to date, so the outlook matters for sentiment around the stock. Retail views on Stocktwits were bullish, but such sentiment is not a market signal on its own.
market impact
NFLX: weak fourth-quarter revenue guidance weighs on the stock and sentiment around streaming.
tags
instruments
sources
- Netflix Stock Drops After-Hours As Revenue Growth Slows Further And Q4 Sales Miss Expectations — Stocktwits, 20 October 2026 at 21:11 UTC
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