Netflix's Ad Demand Intact With Potential to Expand Revenue, Wedbush Securities Says

12:27 PM EDT, 10/21/2026 (MT Newswires) -- Netflix's (NFLX) Q3 results and Q4 guidance were mostly uninspiring as growth slowed, but the company saw low churn against price increases while ad demand remained intact with significant potential to expand revenue, Wedbush Securities said in a note Wednesday. The company reported Q3 earnings late Tuesday of $0.87 per diluted share, up from $0.59 a year earlier and above FactSet consensus of $0.82. Revenue for the quarter was $12.87 billion, up from $11.51 billion a year earlier and in line with estimates. The company trimmed its 2026 ad revenue forecast as some ad product launches and partner integrations were delayed, according to the brokerage. Wedbush said ad revenue is still expected to grow by 80% in 2026 as demand remains strong and advertiser breadth is expanding. Management indicated it plans to move toward a platform model as it expands licensing partnerships and add-on deals, but the path to ad-tier acceleration is longer, analysts wrote. Wedbush Securities reiterated its outperform rating on the stock and cut its price target to $80 per share from $90. Netflix shares were 4.8% lower in Wednesday trading. Price: 65.39, Change: -3.30, Percent Change: -4.81