Netflix reported revenue of $12.56 billion for the second quarter, marginally lower than the $12.59 billion forecast, while its Earnings per Share (EPS) at $0.8, was in-line with the $0.79 estimate.
On a year-on-year basis, Netflix’s topline grew 13%. The management has warned of the third quarter revenue growing 12%, which disappointed the street.
The company also narrowed its 2026 outlook by trimming the revenue figure to $51 billion – $51.4 billion from $50.7 billion – $51.7 billion projected earlier.
Netflix announced that it will also cut back on the frequency of its “What We Watched” reports, which provides an engagement picture among viewers. From twice a year, Netflix will now publish the report only once, a full annual picture, in the first quarter starting 2027. The company attributed this move to put more focus on financial metrics and not others.
The company also expects to double its ad revenue to $3 billion from last year.
The amount of time people spend on Netflix grew 2% in the first half of 2026, a slight improvement over a year ago. The company said that was good, especially given the competition from the World Cup and Winter Olympics, which aired on other networks.
After a failed attempt to acquire Warner Brothers Discovery, Netflix reiterated that its approach has not changed and it will prioritise reinvestment in the business both organically and through selective M&A. It continues to maintain itself as a “builder” and not a “buyer.”
Shares of Netflix are down nearly 20% as of closing of regular trading on Thursday and in case the stock falls on Friday, it will add to those losses. Over the last 12 months, the stock has corrected 40%.
(With Inputs From Agencies)
