Netflix Beats Q3, Cuts Ad Target, Commits to 30 Films/Yr

"Netflix reported third-quarter revenue of $12.87 billion on Tuesday, October 20, up 11.8% from a year earlier and slightly ahead of its own $12.86 billion forecast, with earnings of $0.87 per share against a forecast of $0.82, according to StockTitan's summary of the results. The company guided to $13.44 billion in fourth-quarter revenue and about $51.1 billion for the year, and said it now expects about $2.7 billion in 2026 ad revenue, down from roughly $3 billion. Shares fell about 4% in after-hours trading, StockTitan reported, while Investing.com put the decline closer to 6%; CNBC said the drop followed the advertising and revenue guidance.

On the call, co-CEO Ted Sarandos said, ""Yes, we're going to release about 30 films theatrically this year,"" and described the company's approach as streaming-first with release plans set film by film, according to Investing.com's transcript. He said Narnia: The Magician's Nephew and the Charlie and the Chocolate Factory project will get wide releases with 45-day windows, that La Bola Negra has a 47-day window and that the Cliff Booth film will play in IMAX about four weeks before streaming. Sarandos called new chief content officer Peter Rice the right hire and said, ""We do need better execution in the U.S."" Co-CEO Greg Peters said Netflix is ""a bit behind our aggressive target"" on advertising.

Separately, Variety reported, citing four sources, that ousted film chief Dan Lin clashed with Greta Gerwig during a Zoom meeting about Narnia earlier this year, after which oversight of the film moved to his deputy Doug Belgrad, The Playlist reported. Variety put the film's budget at $250 million, while cinematographer Seamus McGarvey has described it as a $280 million production. Narnia opens in theaters on February 12, 2027, and on Netflix on April 2. Variety and The Hollywood Reporter reported that former Warner Bros. film chiefs Michael De Luca and Pam Abdy could be candidates to replace Lin."