Netflix (NFLX) stock is down 10% after the streaming company reported mixed financial results for this year’s second quarter.
The entertainment company announced earnings per share (EPS) of $0.80 U.S., which was slightly ahead of the $0.79 U.S. forecast on Wall Street.
Revenue in the April through June period totaled $12.56 billion U.S., which fell short of the $12.59 billion U.S. consensus expectation of analysts. Sales were up 13% year-over-year.
Netflix also lowered its forward guidance, saying it now expects 2026 revenue of $51 billion U.S. to $51.4 billion U.S., down from earlier guidance of $50.7 billion U.S. to $51.7 billion U.S.
For the current third quarter, Netflix said that it expects revenue to grow 12% from a year ago. Earlier this year, the company raised its subscription prices across all of its streaming tiers.
A big focus of Netflix’s earnings call was its engagement metrics, which have come into focus after reports that viewership for Netflix series drops following the first season.
Management said that engagement with content remains “healthy,” saying live events were a top draw for members, who watched more than 97 billion hours of content in the year’s first half.
However, Netflix executives said on the earnings call that the company will cut back on the frequency of reporting its “What We Watched” report, which provides a picture of engagement.
Going forward, Netflix will provide information on viewership only once a year, during the first quarter starting in 2027.
Management said that they want to keep the focus of the company’s quarterly financial results on metrics such as revenue and operating profit.
Executives also said that they still expect to double the company’s advertising revenue this year to $3 billion U.S., and that they plan to add more live sports, including NFL football games.
Prior to today (July 17), NFLX stock had declined 42% over the past 12 months to trade at $74.35 U.S. per share.
Tech Insider
