Netflix's shares fell as much as 9% in after-hours trading on Thursday to their lowest level in over a year, after the streaming giant paired in-line second-quarter results with a softer-than-expected outlook for the third quarter. The share slide reflected investor anxiety over whether Netflix's viewer engagement is cooling, with forward guidance weighing more heavily on markets than the actual Q2 figures.

Netflix reported Q2 revenue of $12.56 billion (up 13.4% year on year) and net income of $3.4 billion, or 80 cents per share, roughly matching analyst forecasts of $12.59 billion and 79 cents per share, though operating margin eased to 33.4% from 34.1% a year earlier. For Q3, it guided to revenue growth of 11.7% to $12.86 billion, short of the roughly $13 billion analysts expected, while projecting an improved operating margin of 33.2%. Netflix said viewing hours grew 2% in the first half of 2026, an improvement on 1.5% growth a year earlier despite competition from the Winter Olympics and World Cup, and reiterated its ads business remains on track for about $3 billion in 2026 revenue, with U.S. upfront negotiations in advanced stages. The company also confirmed it will stop publishing its twice-yearly "What We Watched" viewership report, moving to an annual release from 2027 to keep earnings focused on revenue and operating profit.