Netflix stock falls 9% after-hours on weak revenue forecast
Netflix's stock took a big hit, dropping 9% in after-hours trading, after the company predicted lower-than-expected revenue for the upcoming quarter.
Shares slipped from $74.35 to $67.78, and overall, Netflix is down nearly 20% this year.
It's been a rough stretch for the streaming giant as Wall Street hoped for stronger numbers.
Q2 revenue $12.56B, annual engagement reporting
In Q2, Netflix brought in $12.56 billion in revenue, just below analyst predictions, and earned $0.80 per share, barely beating estimates.
For Q3, they expect $12.86 billion in revenue and $0.82 per share, both under forecasts.
Plus, starting in 2027, Netflix will only release engagement reports once a year instead of twice a year and will focus more on financial stats like revenue and operating profit.
Netflix narrows 2026 guidance to $51B-$51.4B
Netflix narrowed its 2026 revenue guidance to between $51 billion and $51.4 billion, not a huge change but still less optimistic than before.
Despite all the ups and downs lately, Netflix says it's sticking with its operating margin target of 31.5% for 2026.