Netflix Shares Tumble as Sales Growth Slows and Ad Forecasts Cut

Netflix shares experienced a significant drop of over 5%, erasing £10 billion from its market capitalization following a disappointing quarterly earnings report. The streaming service revealed slowing sales growth and slashed its advertising sales forecast, contributing to a broader decline in its stock value.

In the three months ending September 30, Netflix reported an 11.8% increase in sales, reaching £9.6 billion. This marks a notable decrease from the 17.2% growth observed in the same quarter the previous year. The company further projected an 11.5% sales growth for the final quarter of the year, down from 17.6% a year prior.

Adding to investor concerns, Netflix revised its annual advertising revenue forecast downwards, from £2.24 billion to just over £2 billion. The company attributed this adjustment to a "slightly slower than expected rollout of some ad product capabilities."

This latest downturn follows a series of challenges for the streaming giant. Last week, Netflix announced it would cut 1,000 jobs, and earlier in the year, it was outbid by Paramount Skydance in a takeover attempt for Warner Bros. The company's shares have fallen nearly 30% in 2026 and were trading near two-year lows.

Analysts noted a lack of clear direction for the company. Danni Hewson, head of financial analysis at AJ Bell, commented that Netflix appears to be "lacking in direction, with the sense of drift only exacerbated by a downgrade to forecast ad revenue." She added, "A sense that it is failing to capture viewers’ imagination with its latest releases is helping to ramp up growth concerns."