Netflix stock slides after quarterly revenue misses Wall Street mark
Netflix shares fell after its second-quarter report showed revenue just under estimates, even as earnings edged past forecasts.
By Georgia Hale · Staff Writer
3 min read
Netflix shares took a hit after the bell Thursday, falling 9% as investors reacted to a second-quarter report that offered a split-screen picture: revenue missed Wall Street’s mark by a hair, while earnings came in slightly ahead.
The streaming company reported $12.56 billion in revenue for the quarter, compared with a consensus estimate of $12.58 billion. Earnings reached 80 cents a share, one cent above forecasts, according to Deadline.
The drop added to a rough stretch for the stock. Deadline reported that Netflix shares had already fallen nearly 45% over the past year, were down 21% so far in 2026 and had slipped to an 18-month low before the earnings release.
Viewing hours rise, but Netflix says hours are not everything
The earnings arrived alongside Netflix’s semiannual “What We Watched” report. In that update, the company said subscribers streamed 97 billion hours in the first half of 2026, a 2% increase from the same period in 2025.
That growth did not quiet the bigger debate around engagement. Deadline reported that Netflix has faced rising questions about how its viewing trends stack up against YouTube, TikTok and other platforms competing for audience time.
A recent Bloomberg report also said Netflix had seen a sharper-than-usual drop between the first and second seasons of some series, adding another data point for investors watching whether viewers are sticking with the platform’s shows.
Netflix addressed the issue in its quarterly shareholder letter, saying the company has refined its view of what keeps customers paying. “As we’ve developed an increasingly sophisticated understanding of how consumers ascribe value to our service, we know not all hours are equal,” the letter said.
The company added that viewing time is only one part of engagement, saying “quality and variety also matter.” Netflix told shareholders the goal is to improve across “quality, variety, and quantity.”
Forecast points to growth, ad push stays on track
Netflix projected 12% revenue growth for the third quarter. The company also narrowed its full-year revenue outlook to a range of $51 billion to $51.4 billion.
Its advertising business remains a key target. Netflix said it still expects to double 2025 ad revenue and reach $3 billion.
Wall Street had been waiting closely for the results, Deadline reported, with investors weighing the company’s next moves after Paramount beat Netflix in the contest to acquire Warner Bros. Discovery.
Some analysts have compared the current pressure on Netflix with its 2022 slump, when the company lost subscribers and later moved into advertising. The latest report gives investors fresh numbers to chew over, but Thursday’s stock reaction showed patience is still thin.
For Netflix, the message to shareholders was direct: the company wants more viewing, but it is also telling Wall Street that the kind of viewing matters. The market, for now, is grading that pitch harshly.
This story draws on original reporting from Deadline.