Overview
- Netflix reported second-quarter results roughly in line with expectations on Thursday but gave weaker third-quarter guidance that sent the stock down about 9% in extended trading.
- The company forecast Q3 revenue of $12.86 billion and diluted EPS of $0.82, which missed analyst estimates and tightened its full-year revenue range.
- Netflix said it will publish its viewing-hours engagement report only once a year starting January 2027 after ending quarterly subscriber disclosures in 2025.
- Management reiterated a target of $3 billion in ad revenue for 2026 and outlined plans to expand advertising, live programming and gaming while saying it is considering a free ad-supported tier in select markets.
- Analysts cut price targets and warned of slower subscriber growth and a weaker content slate, which could prolong pressure on the share price and force Netflix to rely more on ad monetization and product diversification.