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[BUSINESS] · United States · 97 sources

Netflix reports Q2 2026 revenue rise, profit gain and stock drop

Netflix announced its second‑quarter 2026 results, showing revenue of $12.56 billion, a 13.4 % year‑over‑year increase, and net profit of $3.40 billion, up 8.8 %. Earnings per share came in at $0.80, narrowly beating analysts’ expectations. The company reported 97 billion streaming hours worldwide, a 2 % rise, with foreign‑language titles accounting for more than one‑third of total viewership.

The earnings release also highlighted the use of generative AI in about 300 Netflix productions, primarily in post‑production to lower costs and speed delivery. Netflix said it will shift its “What We Watched” engagement report from a semi‑annual to an annual schedule starting in 2027, reducing the amount of public viewing‑hour data.

Guidance for the third quarter projected revenue of $12.86 billion and EPS of $0.82, both below Wall Street consensus, prompting the stock to fall roughly 9 % in after‑hours trading. Analysts cited the weaker outlook and reduced transparency as concerns, despite the solid earnings.

Overall, the results confirm continued subscription growth, higher pricing and advertising revenue, but also signal a slowdown in growth momentum and heightened investor scrutiny.

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