Netflix Shares Fall After Lowered 2026 Guidance
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Netflix shares dropped in after‑hours trading on Tuesday after the company lowered its fourth‑quarter revenue guidance to thirteen point four billion dollars and full‑year advertising sales to two point seven billion dollars. The decline followed a solid third‑quarter performance, with earnings per share of eighty‑seven cents beating expectations and revenue of twelve point eight seven billion dollars matching forecasts. The guidance cut was attributed to timing of expenses, including a recent layoff of about one thousand workers, or six percent of total staff. Executives noted slower rollout of ad product capabilities and ongoing viewership growth challenges.
Timeline
- 2011 — Netflix proposed Qwikster spin‑off, damaging brand
- 2022 — Netflix announced major layoffs, largest since 2022
- On February 1 2026 Netflix cut additional one thousand staff, deepening layoffs.
- On February 7 2026 Netflix released third‑quarter earnings, lowered 2026 guidance.
- On February 7 2026 Shares fell after hours, reflecting investor concern.
Why it matters
What changes?
Netflix shares fell after the company issued a lower fourth‑quarter revenue and full‑year advertising sales guidance.
DeadlineWho is affected?
The guidance cut impacts revenue outlook due to expenses linked to a recent layoff of about 1,000 workers, 6% of staff.
DeadlineAI assisted · Based on the linked reporting.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
































