The Netflix brand is seen on the roof of an workplace constructing in Los Angeles, California, on April 16, 2026.
Michael Yanow | Nurphoto | Getty Photos
Netflix reported second-quarter income and earnings that have been according to analyst estimates on Thursday as Wall Avenue is protecting an in depth eye on the corporate’s promoting and engagement metrics.
Netflix inventory fell greater than 8% in after-hours buying and selling on Thursday.
The streaming large known as engagement with its content material “wholesome,” saying stay occasions have been a prime draw for members, who watched greater than 97 billion hours of complete content material within the first half of this yr. The engagement metric has come into focus after reviews that viewership for Netflix collection drops following the primary season.
On Thursday, nonetheless, the corporate stated it could reduce on the frequency of its “What We Watched” reviews, which give an image of engagement. Following the discharge of Thursday’s report – which supplies info on viewership for the primary half of 2026 – Netflix will shift to publishing the report yearly within the first quarter starting in 2027.
The corporate stated its aim in separating out when “What We Watched” is printed from its earnings outcomes is to maintain the concentrate on monetary metrics like income and working revenue.
Questions on engagement have been prime of thoughts for analysts throughout Thursday’s earnings name.
“I will begin by saying there may be not a linear relationship between viewing hours and income and revenue, as a result of all hours will not be created equal,” stated co-CEO Greg Peters in the course of the name.
Co-CEO Ted Sarandos additionally stated Thursday that there is not “any materials change” in second season viewership of collection versus the primary season, following an earlier report that stated there was a drop-off. “Our season two fall off has really barely improved this yr relative to final yr, so no adjustments in launch methods,” Sarandos stated on the decision.
This is how Netflix carried out for the interval ended June 30 in contrast with estimates from analysts polled by LSEG:
- Earnings per share: 80 cents vs. 79 cents estimated
- Income: $12.56 billion vs. $12.59 billion estimated
Netflix reported $12.56 billion in income, up 13% yr over yr and simply barely lacking analyst expectations. The rise was attributed to membership progress, pricing and elevated advert income.
Earlier this yr, Netflix raised its subscription costs throughout all its streaming plans. The corporate stated Thursday the outcomes of these worth hikes have been per prior adjustments and expectations.
Web revenue for the second quarter was $3.40 billion, or 80 cents per share, in contrast with $3.13 billion, or 72 cents a share in the identical interval final yr.
Netflix expects third-quarter income to develop 12% and known as its 2026 outlook per earlier forecasts. The corporate stated it was narrowing its 2026 forecast income vary to $51 billion to $51.4 billion for the complete fiscal yr, from earlier steering of between $50.7 billion to $51.7 billion.
Promoting stays key to the enterprise and Netflix’s traders because it has been a income driver throughout media as streaming subscriber progress has slowed.
On Thursday, the corporate stated it nonetheless expects to roughly double its advert income yr over yr to $3 billion.
Netflix added that it’s in “superior phases” of discussions with advertisers within the U.S. as a part of its Upfront negotiations, with the expectation that commitments will shut within the coming weeks. Dwell sports activities, such because the Girls’s World Cup, extra NFL video games, MLB occasions and WWE, have attracted strong demand for the corporate.
Basically, Netflix known as out stay occasions as a few of its prime programming this yr, with stay occasions accounting for six of the highest 10 new member sign-up days over the previous 5 years.
Nonetheless, Netflix famous that whereas stay programming accounts for greater than 5% of its content material spending, it makes up about 1% of viewing hours.
Netflix famous that it solely received into stay programming in 2023, following years of progress solely on unique content material and licensed TV collection and flicks. Since then, the corporate has been bulking up on sports activities rights.
In Thursday’s shareholder letter, Netflix famous that the “leisure trade stays dynamic and aggressive.”
Late final yr, Netflix made a play for Warner Bros. Discovery’s movie and streaming enterprise earlier than in the end strolling away from the deal. The proposed deal set off a flurry of hypothesis about if Netflix is now all for shopping for different property.
Netflix stated Thursday its strategy hasn’t modified as it would “prioritize reinvestment within the enterprise, each organically and thru selective M&A, whereas sustaining a well being steadiness sheet and ample liquidity.” Previous to its bid for WBD’s property, Netflix had lengthy known as itself a builder, not a purchaser.
