Netflix The company on Thursday reported second-quarter sales and profits in line with analyst expectations, as Wall Street closely monitors the company’s advertising and engagement metrics.
Netflix stock fell more than 8% in after-hours trading Thursday.
The streaming giant said engagement with its content was “healthy” and said live events were the biggest draw for its members, who watched more than 97 billion hours of content in the first half of this year. Engagement metrics have come into focus following reports that viewership for Netflix series declined after the first season.
But the company announced Thursday that it will reduce the frequency of its “What We Watched” reports, which provide a complete picture of engagement. Following Thursday’s release of the report, which provides information on viewer numbers for the first half of 2026, Netflix will move to publish the report in the first quarter of each year starting in 2027.
“The purpose of separating the publication of the report from the Company’s financial results is to maintain a focus on the Company’s key financial metrics: revenue and operating profit,” according to the letter to shareholders.
Here’s how Netflix performed for the period ended June 30 compared to expectations of analysts surveyed by LSEG.
Earnings per share: 80 cents vs. estimated 79 cents Revenue: $12.56 billion vs. estimated $12.59 billion
Netflix reported revenue of $12.56 billion, up 13% year over year, but slightly below analysts’ expectations. This increase was due to increased membership, pricing, and advertising revenue.
Earlier this year, Netflix increased subscription prices for all streaming plans. The company announced Thursday that the results of these price increases are consistent with previous changes and expectations.
Net income for the second quarter was $3.4 billion, or 80 cents per share, compared with net income of $3.13 billion, or 72 cents per share, in the year-ago period.
Netflix said it expects third-quarter revenue to increase 12% and its 2026 outlook is consistent with previous forecasts. The company announced that it has reduced its full-year sales forecast for 2026 from $50.7 billion to $51.7 billion to $51 billion to $51.4 billion.
Advertising remains a key revenue driver for the company and Netflix investors as streaming subscriber growth slows, making it a revenue driver across media.
The company said Thursday it still expects advertising revenue to roughly double from a year ago to $3 billion.
Netflix added that discussions with U.S. advertisers as part of upfront negotiations are at an “advanced stage” and the deal is expected to close in the coming weeks. Live sports such as the Women’s World Cup, other NFL games, MLB events, and WWE are attracting solid demand for the company.
Overall, Netflix cites live events as its top programming of the year, with live events accounting for six of the top 10 new subscriber days over the past five years.
Still, Netflix noted that live programming accounts for more than 5% of content spending, but only about 1% of viewing time.
Netflix said it will enter live programming for the first time in 2023, after years of growth based solely on original content and licensed TV series and movies. Since then, the company has strengthened its sports rights.
In a letter to shareholders on Thursday, Netflix noted that “the entertainment industry remains dynamic and competitive.”
Late last year, Netflix acquired Warner Bros. Discovery’s movie and streaming business, but ultimately scrapped the deal. This proposed deal has sparked speculation about whether Netflix is interested in acquiring other assets.
Netflix said Thursday that its approach remains unchanged and that it “prioritizes reinvestment in our business through organic and selective M&A while maintaining a strong balance sheet and sufficient liquidity.” Before making a bid for WBD’s assets, Netflix had long referred to itself as a builder rather than a buyer.
