Netflix has reported strong financial results for the second quarter of 2026, but its forecast for the next quarter has disappointed investors.
According to a Reuters report yesterday, the company expects third quarter revenue of $12.86 billion and earnings per share (EPS) of $0.82, both slightly below what Wall Street analysts had predicted. This led to Netflix’s shares falling nearly percent in after hours trading.
The company said its business remains healthy, but it is entering a slower and more stable growth phase after years of rapid subscriber growth.
To boost future revenue, Netflix is expanding its advertising business, live events, and gaming while continuing to invest in original content. It also expects its advertising business to generate $3 billion in revenue this year.
Netflix also announced that starting in 2027, it will publish its viewing-hours report only once a year, instead of twice a year.
The company says it wants investors to focus more on key financial metrics such as revenue and operating profit rather than viewing data.
Despite growing competition from platforms like Disney, YouTube and TikTok, Netflix said viewer engagement remains strong.
It also revealed that AI is now being used across hundreds of productions to improve content creation and post-production workflows.
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