Netflix's Q2 revenue landed just under Wall Street's estimate despite matching its own guidance, sending shares down 8% after hours and extending a rough run for the stock in recent months.
Company revenue rose 13% YoY to US$12.56 billion, just below the $12.58 billion consensus, despite matching the company's own guidance and delivering double-digit growth across every region it reports.
Shares fell about 8% in after-hours trade after the print, which also showed EPS of $0.80 versus $0.79 expected, up from $0.72 a year earlier, per Netflix's Q2 earnings.
"The results of our recent price changes are consistent with prior changes and our expectations," Netflix Chief Financial Officer Spencer Neumann said.
The slide extends a rough stretch for NFLX, which has fallen roughly 24% since the start of 2026 amid a string of separate corporate setbacks.
Netflix walked away from the Warner Bros. Discovery bid earlier this year after Paramount Skydance offered more, collecting a $2.8bn break-up fee, and co-founder Reed Hastings stepped down as board chairman in June.
FY26 revenue guidance came in at $51.0-$51.4 billion (13-14% growth) and its 31.5% op. margin target, while guiding Q3 revenue to about $12.86 billion and EPS to $0.82.
Other financials:
- Op. margin 33.4%, down from 34.1% YoY, on higher content amortisation
- Net income $3.40 billion, up from $3.13 billion; operating income $4.19 billion, up 11%
- Regional revenue: EMEA >$4 billion, LATAM and APAC both >$1.5 billion; UCAN slowest at 10% growth
- Ads revenue tracking to ~$3 billion for FY26, roughly double 2025
- Record $4.7bn buyback in the quarter; $27.1 billion of authorisation remaining
- FCF $1.5 billion, down from $2.3 billion on higher cash tax tied to the WBD break-up fee; FY26 FCF guidance unchanged at ~$12.5 billion
- H1 view hours up 2% YoY vs 1.5% growth in 2025
