Netflix Inc (NFLX  ) shares are sliding Monday ahead of third-quarter earnings this week. Here's what you should know.

Netflix Reports Third-Quarter Earnings Tuesday

Netflix reports third-quarter results on Tuesday after the market closes. Wall Street models earnings of 82 cents a share on revenue of $12.88 billion. Expectations have drifted lower since the last report, which carried a $13.01 billion revenue estimate and an EPS estimate of 84 cents, according to Benzinga Pro.

Hitting the new targets would leave Netflix squarely on its own plan. The company told investors to expect $12.86 billion, a 12% annual gain, so $12.88 billion would run just ahead of that number.

Netflix Q2 Results Set the Bar

Second-quarter revenue grew 13% to $12.56 billion, landing just under the $12.59 billion analysts expected. EPS of 80 cents last quarter edged past the 79-cent forecast.

Netflix pointed to steady engagement, noting that view hours rose 2% in the year's first half, and it forecasted more than $3 billion of ad revenue for 2026. The company also tightened its 2026 revenue outlook, narrowing the band to $51 billion to $51.40 billion after earlier guiding to $50.70 billion to $51.70 billion. Analysts had expected $51.41 billion for the year.

Netflix Dismisses Film Chief Dan Lin

More news today includes the exit of Dan Lin, who ran Netflix's film division for nearly three years. Variety reported the dismissal, citing multiple sources. Per the report, Lin left as the weekend began and is scheduled to address staff Monday.

The shake-up reflects a broader reset. Netflix has spent months fielding headlines about soft engagement and a stagnant share price, and it lost out on Warner Bros. The company has not said who will lead film next, though a decision should come soon. Industry chatter points to Mike De Luca and Pam Abdy, formerly of the Warner Bros. Motion Picture Group, as possible candidates in discussions.

For a stock under pressure, solid numbers when Netflix reports tomorrow would show demand holding firm through the executive turnover. A shortfall could revive concerns about engagement.

NFLX Shares Are Dropping

NFLX Price Action: Netflix shares were down 1.33% at $69.59 at the time of publication on Monday, according to Benzinga Pro.