Netflix shares drop nearly 8% after weak third-quarter forecast
What's new: Netflix expects $12.86 billion in Q3 revenue, below Wall Street estimates, and will make its viewing-hours report annual in 2027.
Netflix reported second-quarter results that were roughly in line with Wall Street expectations, but its weaker third-quarter outlook sent the stock down nearly 8% in after-hours trading. The company posted revenue of $12.56 billion and earnings of 80 cents a share for the quarter ended June 30, versus analyst estimates of $12.59 billion and 79 cents, according to LSEG. Netflix projected third-quarter revenue of $12.86 billion and diluted earnings per share of 82 cents, both below forecasts. The company said growth was driven by membership gains, pricing and advertising revenue, and it reaffirmed its expectation that ad revenue will reach $3 billion by the end of 2026.