Netflix Shares Drop 8% After Narrowing 2026 Revenue Range to $51 billion-$51.4 billion
Updated
Updated · CNBC · Jul 16
Netflix Shares Drop 8% After Narrowing 2026 Revenue Range to $51 billion-$51.4 billion
3 articles · Updated · CNBC · Jul 16
Summary
More than 8% of Netflix's market value was erased after hours after the company tightened its 2026 revenue outlook and said it will publish its "What We Watched" engagement report only annually starting in 2027.
$12.56 billion in second-quarter revenue rose 13% from a year earlier but slightly missed estimates, while earnings of 80 cents a share narrowly beat forecasts; net income increased to $3.40 billion from $3.13 billion.
97 billion viewing hours in the first half of 2026 let Netflix call engagement "healthy," but executives spent the earnings call defending season-two retention and arguing viewing hours do not map directly to revenue or profit.
$3 billion in ad revenue is still expected this year—roughly double from a year earlier—as Netflix said U.S. upfront talks are in advanced stages and price hikes performed in line with expectations.
Live events remain a growth focus: they drove six of Netflix's 10 biggest sign-up days in five years, even though live programming accounts for about 1% of viewing hours and just over 5% of content spending.