Shares in Netflix Inc. (Nasdaq: NFLX) have fallen to a more than a two-year low after the streaming giant posted its Q3 2026 results yesterday.

Despite hitting Wall Street’s projected revenue target of nearly $12.9 billion for the quarter, an update on the company’s increasingly critical ad business dampened investor optimism, sinking the stock with it. Here’s what you need to know.

What’s happened?

Yesterday, Netflix announced its results for its third quarter of fiscal 2026. Unfortunately for the company, those results—and Netflix’s guidance—were somewhat of a mixed bag.

There was good news: Revenue for the quarter totaled $12.87 billion, representing 11.8% year-over-year growth.

The company’s diluted earnings per share also reached 87 cents.…