Netflix shares dropped 7.3% after Q2 earnings missed revenue estimates, extending year-to-date losses to over 26%.
Netflix (NASDAQ: NFLX) stock declined 7.3% on July 17 following its second-quarter earnings report, which showed revenue slightly below analysts’ expectations. The drop extends the stock’s year-to-date loss to more than 26%, its worst annual performance since 2022.
While revenue missed consensus, management’s guidance remained unchanged from prior outlooks. The company reported a 2% increase in viewing hours for the first half of 2026, up from 1.5% in 2025, despite competition from major events like the Winter Olympics and FIFA World Cup.
Advertising revenue is projected to reach $3 billion this year, doubling 2025’s total, driven by strong demand for live sports content and AI-powered tools. The market reaction reflected heightened expectations rather than fundamental business concerns.