Netflix reports $12.6 bn Q2 revenue, launches record $5 bn buyback as shares tumble

Netflix announced second‑quarter 2026 results on July 16‑18. Revenue reached $12.56 billion, a modest miss against consensus, while diluted earnings per share came in at $0.80, barely beating estimates. Operating income was about $4.2 billion and the operating margin slipped to 33.4 % from 34.1 % a year earlier.

The streaming giant deployed nearly $5 billion in share repurchases during the quarter, the largest buyback in its history, and raised its authorized buyback ceiling to $27 billion. Despite the aggressive capital return, the stock fell roughly 8‑9 % after the release and is down about 48 % from its 2022 peak.

Management reaffirmed a 2026 revenue outlook of $51‑$51.4 billion (13‑14 % growth) and a 31.5 % operating‑margin target. The ad‑supported tier, priced at $8.99 per month, is expected to double advertising revenue to $3 billion by 2026. Price hikes in the United States and Mexico were noted as successful.

Analysts remain divided: some see a value case with price targets near $750, while others warn of slowing subscriber engagement, intensified competition, and reduced transparency after Netflix stopped reporting detailed subscriber metrics.