Netflix NASDAQ:NFLX fell more than 9% early Friday after the streaming company issued third-quarter revenue and earnings guidance that came in below Wall Street expectations, despite reporting higher second-quarter revenue and profit.
Netflix reported second-quarter revenue that rose about 13% year over year, supported by subscriber additions, pricing actions and advertising. Net income totaled about $3.4 billion, while earnings per share slightly exceeded analysts' expectations.
However, the company forecast third-quarter revenue of $12.86 billion and EPS of $0.82, both below consensus estimates. Netflix also narrowed its full-year 2026 revenue outlook to $51.0 billion to $51.4 billion.
Netflix said viewers streamed more than 97 billion hours of content during the first half of 2026. Beginning next year, the company plans to publish its detailed audience engagement report annually rather than twice a year as it shifts investor focus toward revenue and operating profit. Netflix also continues expanding its advertising business and plans to test additional short-form content starting Aug. 3.