Netflix reported $12.56 billion in Q2 revenue and $0.80 EPS, topping estimates, but shares fell on reduced engagement data disclosure.
Netflix shares dropped as much as 12.2% Friday before paring losses to 9.1% after reporting Q2 2026 results. Revenue reached $12.56 billion, matching estimates, while earnings per share of $0.80 exceeded expectations by $0.01. Operating income growth remained above 20%, aligning with guidance.
The company’s full-year guidance stayed unchanged at the midpoint, and it has missed earnings estimates only once annually since 2023. However, Netflix announced it will reduce its “What We Watched” engagement report to an annual release starting in 2027, down from biannual updates.
Investors reacted negatively, with some interpreting the move as a lack of transparency. Q3 guidance also came in slightly below Wall Street consensus, adding to the downturn. Viewing hours grew 2% in the first half, trailing subscriber growth.