Netflix reported 13.4% year-over-year revenue growth but fell short of Wall Street forecasts, signaling a shift to slower expansion.
Netflix posted second-quarter revenue of $12.6 billion, up 13.4% from the prior year but below analyst expectations. The miss triggered an initial sell-off in shares as investors recalibrated expectations for the streaming giant.
The company’s growth rate has decelerated from pre-pandemic levels, when annual sales increases exceeded 20%. Analysts now project an 11.6% annualized revenue gain from 2025 to 2028, down from a 12.7% compound annual rate over the past three years.
Netflix has also reduced transparency, discontinuing quarterly subscriber updates in 2025 and cutting engagement data releases from twice to once annually starting in 2027. The moves reflect its transition to a more mature business model, including recent shifts like ad-tier adoption and password-sharing crackdowns.