Netflix drops about 10% after weak Q3 outlook despite profit gain

Netflix shares fell about 10% Friday after the streaming company posted second-quarter results that largely matched expectations but gave a softer-than-expected forecast for the current quarter. Revenue for the three months ended June 30 rose 13% from a year earlier to $12.56 billion, while net income climbed to $3.40 billion, or 80 cents a share, from $3.13 billion, or 72 cents a share, a year earlier. For the third quarter, Netflix expects revenue of $12.86 billion and diluted earnings per share of 82 cents, below analyst forecasts tracked by LSEG. The company also said it will publish its viewing-hours report once a year starting in January 2027 as it shifts attention toward revenue and operating profit.