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Netflix posts $12.56 billion in Q2 revenue as shares fall after hours

Netflix posts $12.56 billion in Q2 revenue as shares fall after hours

Soft third-quarter guidance and reduced engagement disclosure weighed on the stock after earnings, while record buybacks, advertising growth, AI-related efficiencies and broker price-target cuts signaled a mixed near-term outlook.

Fact Check
CNBC explicitly reports Q2 2026 revenue of $12.56 billion (+13% YoY) and EPS of $0.80, matching the claim's revenue figure exactly. The official Netflix Q2 2026 Shareholder Letter corroborates revenue of ~$12.6B, operating income of $4.2B, and EPS of $0.80. The claimed $3.4 billion net income is arithmetically consistent with EPS $0.80 and Netflix's ~425M diluted shares outstanding. No source contradicts these figures.
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Summary

Netflix reported second-quarter revenue of $12.56 billion, up 13% from a year earlier but slightly below analyst expectations, and forecast third-quarter revenue of $12.86 billion, below Wall Street's roughly $13 billion estimate. The company updated its full-year revenue outlook to $51 billion to $51.4 billion, reiterated its 31.5% operating margin target, repurchased about $4.7 billion of stock in its largest quarterly buyback on record, and said it would reduce the frequency of viewing-hours disclosures. Shares fell about 8% to 9% in after-hours trading after the report, and several brokerages later cut their price targets, reflecting a more cautious near-term view despite continued optimism around advertising, low churn and AI-driven production savings.

Terms & Concepts
  • operating margin: The percentage of revenue left after operating expenses, used to gauge the profitability of a company's core business.
  • buyback: A company's repurchase of its own shares, which can signal management's confidence and return cash to shareholders.
  • price targets: Analysts’ projected future share-price levels.