$NFLX 📺 Netflix reports Q2 2026 results

📊 Q2 2026 results

🔹 Revenue: $12.56 billion (analysts expected $12.59 billion) 🔴 ➡️ Up 13% year-over-year.

🔹 Earnings per share (EPS): $0.80 (a cent above market expectations) 🟢 ➡️ Up 11% compared to last year.

🔹 Operating margin: 33.4% ➡️ Down 70 basis points from a year ago.

🔹 Free cash flow: $1.53 billion (estimate was $2.72 billion) 🔴 ➡️ Down 33% year-over-year.

🔮 Q3 outlook

🔹 Revenue: $12.86 billion (Wall Street expected $13.01 billion) 🔴

🔹 EPS: $0.82 (below market estimates) 🔴

🔹 Operating income: $4.27 billion (slightly below consensus) 🔴

🔹 Operating margin: 33.2% (also slightly below analyst expectations) 🔴

📅 Full-year 2026 outlook

🔹 Revenue: $51.0–$51.4 billion ➡️ Range is essentially in line with market expectations.

🔹 Revenue growth rate: 13–14% ➡️ Company slightly refined its guidance.

🔹 Operating margin: 31.5% ➡️ Somewhat lower than analysts anticipated.

🔹 Free cash flow: approximately $12.5 billion ➡️ Also below consensus.

🔹 Advertising business: approximately $3 billion ➡️ Ad revenue is expected to roughly double from last year.

🌍 Regional performance

🔹 US and Canada: $5.43 billion (+10%)

🔹 Europe, Middle East and Africa: $4.03 billion (+14%)

🔹 Latin America: $1.58 billion (+21%)

🔹 Asia-Pacific: $1.51 billion (+16%)

📌 Other highlights from the results

🔹 Operating income rose 11% year-over-year to $4.19 billion.

🔹 Net income reached $3.40 billion, a 9% increase.

🔹 Operating cash flow was $1.74 billion, down 28% year-over-year.

🔹 Viewers watched more than 97 billion hours of Netflix content in the first half, a slight increase from last year.

🔹 Netflix also repurchased $4.7 billion of its own shares, a record for a single quarter.

💡 What stood out in the results

🔸 Weaker free cash flow was mainly due to higher tax payments and one-time costs tied to ending the deal with WBD.

🔸 Generative AI was used this year in the production of approximately 300 titles, mostly in post-production.

🔸 Starting in 2027, Netflix will publish its What We Watched engagement statistics only once a year.

🔸 Management said the latest subscription price increase is developing as planned and hasn't negatively impacted demand.

🗣️ Management commentary

💬 “Our business is developing according to plan, and we continue to believe that we will meet the targets we set for this year.”