Netflix ad revenue forecast cut to $2.7bn as co-CEO admits it is behind target

Netflix has cut its 2026 advertising revenue forecast by about 10%, from $3bn to roughly $2.7bn, after admitting that parts of its ad business are running behind schedule. The new figure came with its third-quarter results on Tuesday, when the company blamed a slower than expected rollout of some ad products and partner integrations, as Marketing Dive reported.

What Netflix said

Co-chief executive Greg Peters said the company had set big growth targets for advertising this year and was “a bit behind our aggressive target for the year”. He said the ads business is still growing by more than 80% in 2026 and that demand from advertisers remains strong. The original $3bn forecast, set in the spring, would have doubled ad revenue year on year.

The wider results were solid but slower. Revenue rose 12% to $12.9bn in the quarter, Netflix’s slowest quarterly growth in three years, and full-year guidance was trimmed to $51.1bn. Chief financial officer Spencer Neumann told investors the company wants viewing hours to grow faster and is “not satisfied” with the current pace, as Marketing Week reported. The results came a week after Netflix announced around 1,000 job cuts, about 6% of its workforce.

The new ad tools

On the same day, Netflix announced a set of updates aimed at the measurement and targeting gaps advertisers have complained about. The Trade Desk’s audiences are now available across Netflix ads, alongside Yahoo and Amazon, and from next month advertisers will be able to bring any third-party data partner or their own first-party audiences. It has also upgraded its Conversion API and launched a Netflix Pixel, giving access to more than 20 lower-funnel conversion events, with in-platform measurement through Yahoo and The Trade Desk to follow.

The ad plan will also expand to 15 more countries in March 2027, including Ireland, the Netherlands, Belgium, Sweden, Denmark and Poland.

Why it matters

For UK buyers, who have had access to the ad tier since November 2022, the forecast cut is less a warning than an explanation. Netflix built its ad business fast on reach and brand-safe premium content, but advertisers increasingly want the same targeting and proof of outcome they get from Amazon, YouTube and the retail media networks, and that is the part that has taken longer to build.

The direction is clear: more programmatic access, more data partners and more performance measurement. With streaming budgets under pressure and the Paramount and Warner Bros merger reshaping the market, Netflix needs its ad tools to catch up with its audience if it is to take a bigger share of a growing global ad market.