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Netflix stock drops 13% after muted revenue outlook and guidance cut
Netflix said it expects third quarter revenue growth of 12% and narrowed full-year 2026 revenue guidance to $51 billion to $51.4 billion.
Netflix shares fell sharply, down 12.6% to a 22-month low of $65 on July 17 after the streaming company issued another muted revenue outlook, even though its second-quarter results broadly met expectations, LiveMint Markets reported.
For the June quarter, Netflix reported revenue of $12.56 billion, up 13% year-on-year, and net income of $3.40 billion, or 80 cents per share, compared with $3.13 billion, or 72 cents per share, a year earlier, according to the report.
The company cited moderating revenue growth despite maintaining its position as the largest paid streaming platform by subscribers and viewership. Netflix also linked performance pressures to a relatively weak original content pipeline in the first half of the year, including returning series that did not match earlier-season viewership, LiveMint Markets said.
Looking ahead, Netflix expects third-quarter revenue to grow 12% and kept its fiscal year 2026 outlook broadly unchanged, while narrowing its full-year 2026 revenue guidance to $51 billion to $51.4 billion from an earlier forecast of $50.7 billion to $51.7 billion. The report added that the stock has declined more than 45% from its June 2025 record high and has been down in 10 of the past 12 months.