Netflix anticipates its advertising revenue will nearly double to approximately $3 billion by 2026, as the company expands its ad-supported tier, which accounted for over 60% of first-quarter sign-ups in ad-supported markets. The advertiser base has surged by over 70% year-over-year to more than 4,000 clients, reflecting a growing acceptance among consumers and advertisers. Netflix currently captures about 5% of global TV viewing and has penetrated less than 45% of its addressable broadband market, indicating significant room for growth.
As Netflix continues to enhance its advertising strategies with its proprietary ad-tech platform and a variety of new inventory options, it reaffirmed its revenue outlook for 2026 at $50.7-$51.7 billion. In comparison, The Walt Disney Company and Roku remain major competitors, with Roku reporting a 27% increase in advertising revenue in the first quarter of 2026.
Despite these developments, Netflix’s shares have declined by 6.8% year-to-date. The Zacks Consensus Estimate for Netflix’s 2026 earnings is $3.60 per share, which represents a 42.29% increase from the previous year.
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