Netflix (NFLX) earnings Q2 2026
netflix It reported second-quarter revenue and earnings in line with analyst estimates on Thursday, as Wall Street kept a close eye on the company’s advertising and engagement metrics.
Netflix shares fell more than 8% in after-hours trading Thursday.
The streaming giant described engagement with its content as “healthy” and said live events were the top draw for members, who watched more than 97 billion hours of content overall in the first half of this year. The engagement metric came into focus following reports that viewership of Netflix series dropped after the first season.
But on Thursday, the company released “What We Watched,” which offers a snapshot of the interaction. announced that it would reduce the frequency of its reports. Following the publication of Thursday’s report, which provides information about viewing rates for the first half of 2026, Netflix will begin publishing the report annually from the first quarter of 2027.
“The purpose of separating the release of the report from our earnings results is to maintain focus on our key financial metrics, revenue and operating profit,” according to the shareholder letter.
Here’s how Netflix realized Compared to forecasts by analysts surveyed by LSEG for the period ending June 30:
- Earnings per share: Estimate of 79 cents versus 80 cents
- Revenues: $12.56 billion vs. $12.59 billion estimated
Netflix reported revenue of $12.56 billion, up 13% year over year and falling slightly below analyst expectations. The increase was attributed to membership growth, pricing and increased advertising revenue.
Earlier this year, Netflix increased subscription prices on all its streaming plans. The results of these price increases are consistent with previous changes and expectations, the company said Thursday.
Net income in the second quarter was $3.40 billion, or 80 cents per share, compared to $3.13 billion, or 72 cents per share, in the same period last year.
Netflix expects third-quarter revenue to rise 12% and said its 2026 outlook is consistent with previous forecasts. The company said it narrowed its 2026 forecast revenue range to $51 billion to $51.4 billion from the previous forecast of $50.7 billion to $51.7 billion for the full fiscal year.
As the growth rate of streaming subscribers slows, advertising, a source of revenue across media, continues to play a key role for the business and Netflix investors.
The company on Thursday said it expects to roughly double its advertising revenue on a yearly basis to $3 billion.
Netflix added that discussions with advertisers in the US are in the “advanced stages” as part of prepayment discussions, with the expectation that the commitments will be finalized in the coming weeks. Live sports like the Women’s World Cup, more NFL games, MLB events and WWE have brought huge demand for the company.
Overall, Netflix called the live events some of its best programming this year; In the last five years, six of the 10 days with the most new member registrations were live events.
Still, Netflix noted that live programming accounts for more than 5% of content spending, while accounting for about 1% of viewing hours.
Netflix has stated that it is only entering live programming in 2023, after years of growth in original content and licensed series and movies. Since then, the company has been investing in sports rights.
In its shareholder letter on Thursday, Netflix noted that “the entertainment industry remains dynamic and competitive.”
Late last year, Netflix, Warner Bros. He made a play for Discovery’s film and streaming business and eventually walked away from the deal. The proposed deal has sparked a number of speculations about whether Netflix is now interested in acquiring other assets.
Netflix said Thursday that its approach remains unchanged because it will “prioritize reinvestment in the business, both organically and through selective mergers and acquisitions, while maintaining a healthy balance sheet and ample liquidity.” Before making a bid for WBD’s assets, Netflix had long described itself as a builder, not a buyer.
