Netflix shares drop 6% after profit jump overshadowed by ad revenue forecast cut

Netflix posted a 44 percent profit jump, but shares fell about 6 percent after the company cut its ad revenue forecast and issued weaker fourth-quarter guidance.

• Netflix reported third-quarter net income of $3.66 billion, up 44 percent from a year earlier, on revenue of $12.87 billion.
• Shares fell about 6 percent in pre-market trading after Netflix cut its advertising revenue forecast and issued fourth-quarter guidance below expectations.
• Netflix forecast fourth-quarter revenue of $13.44 billion and full-year 2026 revenue of $51.1 billion.
• Co-chief executive Ted Sarandos said the company will focus on producing high-quality series and films.