Overview
- The company reported second-quarter revenue of $12.56 billion and earnings per share of $0.80, roughly in line with analysts' expectations, in results released after the market close on Thursday.
- Netflix forecast third-quarter revenue of $12.86 billion and diluted EPS of $0.82, a projection below some Wall Street estimates that prompted management to narrow its full-year revenue range.
- Management said it will shift its viewing-hours report from twice a year to once a year starting in January 2027 and reported that viewing hours rose about 2% in the first half of 2026.
- Netflix reiterated an approximate $3 billion ad-revenue target for 2026 and highlighted efforts to grow ads through live events, expanded sports and short-form clips plus new product features and selective acquisitions.
- Investors reacted negatively with shares falling further after the announcement, leaving the stock down roughly 20%–21% year-to-date as analysts remain split between seeing the pullback as a buying opportunity and flagging persistent engagement and competitive risks.