Netflix Inc (NASDAQ:NFLX, XETRA:NFC) shares fell about 8% in after-hours trading after the streaming company reported second-quarter revenue that came in just below Wall Street expectations, overshadowing a slight earnings beat.
For the quarter ended June 30, Netflix posted diluted earnings per share of $0.80, ahead of the consensus estimate of $0.79.
Revenue rose 13.4% year over year to $12.56 billion but fell just short of analysts' expectations of $12.58 billion.
Operating income increased 11% from a year earlier to $4.19 billion, while operating margin was 33.4%, compared with 34.1% in the prior-year quarter. Net income totaled $3.40 billion, up from $3.13 billion a year ago.
The company said revenue growth was driven primarily by membership growth, pricing initiatives and higher advertising revenue.
It recorded double-digit revenue growth across all geographic regions, with revenue surpassing $4 billion in Europe, the Middle East and Africa, and $1.5 billion in both Latin America and Asia-Pacific.
Netflix said recent price increases have performed in line with expectations, noting that second-quarter revenue growth in the US and Canada reflected only a partial-quarter impact from the changes.
The company also pointed to healthy engagement, with view hours increasing 2% in the first half of 2026 compared with 1.5% growth in the same period last year, despite competition from major sporting events including the Winter Olympics and the FIFA World Cup.
Looking ahead, Netflix forecast Q3 revenue of approximately $12.86 billion, representing year-over-year growth of 11.7%, and projected diluted earnings per share of $0.82. The company expects an operating margin of 33.2% for the quarter.
Netflix also reaffirmed its 2026 outlook, narrowing its projected revenue range to between $51.0 billion and $51.4 billion while maintaining its forecast for a 31.5% operating margin.
The company said it continues to expect annual revenue growth of 13% to 14%, supported by membership gains, pricing and a projected doubling of advertising revenue to about $3 billion this year.
