Netflix Inc. NASDAQ:NFLX, the world's largest paid streaming service by subscribers and viewership, has projected a second consecutive quarter of slowing sales growth, increasing investor concerns about whether the company can regain momentum. Netflix expects current-quarter revenue of $12.9 billion and earnings of 82 cents per share, with both figures coming in slightly below analysts' expectations. The stock fell about 9.5% in Friday premarket trading after dropping as much as 9% following the forecast, potentially pushing the shares to their lowest intraday level since September 2024. Netflix stock has now declined more than 40% over the past year as investors assess the company's pursuit of Warner Bros. Discovery Inc., a media and entertainment company, alongside its recent financial performance.
Netflix reported second-quarter revenue of $12.6 billion and earnings of 80 cents per share, matching Wall Street's consensus estimates. However, the company's future growth has become the main focus after a months-long shortage of major new hits and weaker viewer retention for several returning shows during the first half of the year. The amount of time viewers spent on Netflix increased 2% in the first half of 2026, representing a modest improvement from the previous year despite competition from the World Cup and Winter Olympics on other networks. Chief Financial Officer Spencer Neumann said Netflix has reached about 45% of its addressable market, accounts for only 5% of global television viewing, and expects to add $6 billion in sales this year, suggesting management still sees room for further expansion.
Netflix plans to increase programming spending by about 10% this year while expanding into live sports, video podcasts, partnerships with social-media personalities, and a recently launched arrangement with French broadcaster TF1. The company also said it has used generative artificial intelligence on approximately 300 shows and is considering additional subscriber-acquisition strategies, including free trials in selected markets and a possible free advertising-supported service at a later stage, although no immediate launch is planned. At the same time, Netflix will publish its What We Watched viewership report annually instead of twice a year, a change that may increase investor concerns about engagement transparency. Management has maintained that engagement remains healthy, but investors may continue to watch whether these programming investments and new distribution strategies can support stronger sales growth and improve sentiment toward the stock.