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 underscores investor anxiety over whether Netflix's viewer engagement is cooling, meaning the forward guidance carried more weight with markets than the actual Q2 numbers.

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, a slight improvement on 2025, and confirmed its ads business remains on track for about $3 billion in revenue this year, with strong interest reported in upcoming live programming including the 2027 FIFA Women's World Cup and an expanded NFL slate.