Streamer still reports 12% revenue growth in Q3 and unveils new measurement and targeting tools for advertisers

October 2026 — Netflix has lowered its full-year advertising revenue forecast by about 10%, now projecting roughly $2.7 billion in 2026 ad revenue, down from the $3 billion it had previously guided, according to its third-quarter earnings released this week.

The company reported Q3 revenue of $12.9 billion, up 12% year over year, driven by subscriptions, pricing, advertising and favorable currency movements. However, it also trimmed its overall 2026 revenue guidance to $51.1 billion, reflecting 13% growth.

Delays, not demand

Co-CEO Greg Peters told investors that the company had set ambitious targets for its ads business and is currently running behind them. He noted the ad business is still growing at more than 80% this year. Netflix attributed the shortfall to slower-than-planned rollouts and integrations of new ad products, while saying advertiser demand remains strong and the pool of advertisers continues to widen.

New tools for advertisers

Alongside its results, Netflix announced upgrades to its Ads Suite, including an enhanced Conversion API and a new Netflix Pixel that lets advertisers test first-party measurement and build audience segments from conversion data.

Beginning next month, advertisers will be able to use their own first-party audiences or any third-party data partner through The Trade Desk on Netflix inventory. This builds on earlier audience partnerships with Yahoo DSP and Amazon Ads. Netflix will also introduce in-DSP measurement with Yahoo and The Trade Desk.

Global expansion

The ad-supported plan will expand to 15 additional countries. Austria, Belgium, Colombia, Denmark, Ireland, the Netherlands, Norway, Peru, Poland, Sweden and Switzerland are set to join in March 2027.

Industry reaction

The results follow Netflix’s recent layoff of around 6% of its workforce, including Chief Content Officer Bela Bajaria. Forrester analyst Mike Proulx said the cuts and the reduced forecast signal slowing growth and raise questions about how much advertising can contribute to a rebound. TransUnion’s Julie Clark said Netflix’s ability to link viewer engagement to measurable business outcomes will determine whether advertisers continue increasing their spend.