Overview
- The company, which reported second-quarter results Thursday, recorded $12.56 billion in revenue and $0.80 GAAP earnings per share while saying results were in line with its own guidance.
- Netflix guided third-quarter revenue to $12.86 billion, below the roughly $13.0 billion analysts expected, and tightened full-year revenue to $51.0 billion–$51.4 billion.
- Shares fell about 8–12% in after-hours and premarket trading after the guidance and disclosure changes prompted multiple analyst price-target cuts.
- Management said it will publish its 'What We Watched' viewing-hours report once a year starting in 2027 and reiterated an expected roughly $3 billion in ad revenue for 2026.
- Free cash flow fell to about $1.5 billion in Q2 partly because of tax and termination payments tied to the abandoned Warner Bros. Discovery pursuit while Netflix executed a record $4.7 billion buyback and kept an active repurchase plan.