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Netflix shares fell after guidance pointed to slower growth ahead
The stock dropped about 9% in after-hours trading following a second-quarter forecast, as revenue rose 13% year over year to $12.6 billion.
Netflix shares fell in after-hours trading after the streaming company’s second-quarter update included a forecast that suggested slower growth ahead, according to Yahoo Finance. The move came nearly ten years after Netflix also declined sharply the day after its 2016 second-quarter report showed subscriber growth coming in below its own forecast.
On the quarter, Netflix reported revenue of $12.6 billion in Q2, up 13% year over year and in line with management’s guidance, with earnings per share rising 11% year over year to $0.80. The company’s operating margin was 33.4%, slightly lower than 34.1% in the year-ago quarter, as content amortization increased faster in the first half of 2026.
Netflix said it still expects a full-year operating margin of 31.5%, up from 29.5% in 2025. Engagement also remained strong, with members watching more than 97 billion hours of content in the first half of 2026, its highest half-year total to date.