Netflix, Inc. (NFLX) reported second-quarter 2026 earnings on Thursday, revealing a revenue of $12.56 billion, which fell short of analyst expectations by 0.1%. The company’s stock dropped over 8% in after-hours trading following the announcement. Earnings per share reached 80 cents, surpassing the Zacks Consensus Estimate by 1.27% and showing an 11.1% increase year over year.
Growth was largely driven by membership increases and higher advertising revenues, with a notable 21% rise in Latin America and 16% in the Asia-Pacific region. However, Netflix refrained from sharing specific membership numbers. The company narrowed its full-year revenue outlook for 2026 to $51.0-$51.4 billion, projecting a 13-14% growth. Netflix’s operating income was reported at $4.19 billion, with a 33.4% operating margin, down slightly from 34.1% a year earlier.
In the wake of a terminated acquisition deal with Warner Bros., Netflix revealed free cash flow of $1.53 billion, down from $2.27 billion a year prior, impacted by increased cash tax payments. The company ended the quarter with $9.1 billion in cash, and authorized an additional $25 billion in share repurchases. For Q3 2026, Netflix forecasts revenues of $12.86 billion, marking a 12% increase year over year.
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