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Netflix shares drop after mixed Q2 results miss revenue estimates

Netflix posted 80 cents adjusted EPS versus 79 cents expected, but revenue of $12.56 billion trailed estimates as the company also plans to publish engagement data only starting in 2027.

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Netflix’s stock fell after the company delivered a mixed quarter, with investors reacting to a revenue miss even as adjusted earnings slightly beat expectations, according to MarketBeat Ratings.

Netflix reported adjusted EPS of 80 cents, a penny above the 79 cents estimate, while revenue came in at $12.56 billion, just under the $12.58 billion expected. The company also said revenue rose 13% year over year, and its operating margin was 33%.

MarketBeat Ratings characterized the results as the company setting a low bar yet not clearing it, while noting that investors are now focused on how to value Netflix’s current business. The article also highlights competitive pressure, with Netflix stating it has about 5% of its total addressable market.

A key takeaway is a change to how Netflix reports engagement metrics. The company will publish its engagement numbers, including its “What We Watched” report, only in the first quarter starting in 2027, with management citing a goal of keeping attention on revenue and operating profit.

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