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Netflix shares slide after weaker-than-expected Q3 guidance
Netflix reported $12.56 billion in Q2 revenue, but its Q3 outlook and revised subscriber and engagement disclosures pushed shares down about 9% after the close on July 16.
Netflix shares fell in after-hours trading after the company reported fiscal Q2 2026 results and delivered weaker-than-expected guidance for the upcoming quarter, with investors focusing more on Q3 outlook than on the headline numbers. According to Yahoo Finance, Netflix reported $12.56 billion in revenue for the quarter, up 13% year over year, and GAAP net income of just over $3.4 billion, or $0.80 per share. Revenue and EPS were near Wall Street consensus, with analysts expecting about $12.58 billion in revenue and $0.79 per share in GAAP EPS. The market reaction came as management set Q3 revenue expectations at $12.86 billion, representing about 12% year over year growth, and forecast GAAP net income of $3.45 billion, or $0.82 per share. Netflix also projected full-year revenue between $51 billion and $51.4 billion, a narrower range than earlier guidance. Yahoo Finance reported that investor concern was amplified by managements disclosure and guidance approach, including plans to reduce the frequency of its twice-yearly viewing-hours report to once per year beginning in January 2027, and that the company had guided Q2 revenue and EPS below analysts consensus for the second quarter in a row. The article also notes that at least 11 analysts lowered price targets after the update, following Netflixs after-hours decline of roughly 9% that evening.