Netflix Q2 Earnings Report
Netflix (NASDAQ: NFLX) shares dropped 7.3% on Friday, following the announcement of its Q2 earnings, which showed a revenue increase of 13% to $12.56 billion. Adjusted earnings per share (EPS) rose 11% to $0.80, although this fell short of analyst expectations of $0.79 EPS on revenue of $12.59 billion. The company’s revenue growth varied by region, with the U.S. and Canada seeing a 14% increase and the Asia-Pacific region 20%.
Future Growth Forecasts
Looking ahead, Netflix anticipates slower revenue growth for Q3, projecting it to fall below 12%. Viewership data indicates only a 2% increase in viewing hours for the first half of 2026, a marginal uptick from 1.5% growth in the same period of 2025. The shift towards cable-like models is reflected in Netflix’s increased investment in live events and advertising, expected to consume over 5% of its content spending despite only accounting for 1% of viewing hours.
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