Netflix shares slide after Q2 sales land near Wall Street target
Netflix posted $12.56 billion in Q2 revenue and said first-half viewing hours rose 2%, but its stock fell more than 6% after hours.
By Poppy Nakagawa · Culture Writer
3 min read
Netflix hit roughly the number Wall Street was waiting for in the second quarter, then watched its shares take a turn after the bell.
The streaming company reported $12.56 billion in revenue for the second quarter of 2026, a 13.4% rise from the same period a year earlier. Net income came in at $3.4 billion, equal to 80 cents per share, according to figures reported by Netflix.
Analysts had expected $12.59 billion in revenue and earnings of 79 cents per share on average, according to LSEG Data & Analytics. That put Netflix’s sales just shy of the consensus estimate, while profit per share came in a penny above expectations.
Even so, investors sent the stock lower in after-hours trading Thursday. Variety reported that Netflix shares dropped more than 6% following the earnings release, with the move coming as the company’s third-quarter revenue outlook landed lower than investors had hoped.
Netflix says viewing is still growing
The results arrived as investors have been watching Netflix’s engagement numbers closely. The company said viewing hours increased 2% in the first half of 2026.
Netflix said that growth was stronger than the 1.5% gain it posted in the comparable period in 2025. The company also said the increase came despite competition for viewers from the Winter Olympics and the World Cup this year.
In a letter to shareholders, Netflix said engagement remains healthy and said it is continuing to work on improving it.
The company also released its latest “What We Watched” report for the first half of 2026, part of a twice-yearly disclosure schedule it has used to show title-level viewing data.
That schedule is changing. Netflix said that beginning in 2027, it will publish the report once a year in the first quarter instead of twice annually.
According to Netflix’s shareholder letter, the change is meant to separate the viewing report from earnings so attention stays on the company’s key financial measurements, including revenue and operating profit. The company said it will continue to publish title-by-title and total viewing-hours data, including weekly Top 10 lists for movies and series in more than 90 countries.
Price hikes and buybacks in the mix
The second-quarter numbers also reflect Netflix’s recent subscription price increases. Variety reported that the company raised prices on its three U.S. plans, its second price increase in a little over a year.
Netflix has also been using buybacks as part of its financial strategy. On April 22, the company’s board approved the repurchase of an additional $25 billion in common stock, according to Variety.
The earnings update shows a company still adding revenue and profit while facing a more demanding market reaction. For Netflix, meeting expectations was not enough to keep the stock steady after hours.
This story draws on original reporting from Variety.