- Netflix reported Q2 2026 EPS of $0.80 versus $0.79 consensus, but revenue of $12.56B fell short of the $12.58B forecast, and shares plunged 8.58% after hours to roughly $67.97.
- FX-neutral revenue growth decelerated to 11% year-over-year from 12% in the prior quarter, while view-hours growth slowed to 2% in H1 2026, shifting the growth mix toward price increases, member additions, and advertising.
- Management held its FY26 revenue growth outlook of 13-14% and guided Q3 to 12% reported and 11% FX-neutral growth, with content spending up 10% in 2026, advertising revenue near $3.00B, and a record $4.7B Q2 buyback leaving $27B in authorization.
- Florida's September 9 lawsuit alleges Netflix violated the Florida Deceptive and Unfair Trade Practices Act and the Florida Digital Bill of Rights by promising "no advertising" and "not tracking" while logging billions of user actions daily, including from children's profiles, and sharing that data with third-party brokers and ad-tech platforms for its November 2022 ad-supported tier.
- The suit seeks to permanently bar Netflix from the alleged practices, force it to purge the data, and impose civil penalties up to $50,000 per violation.
Quotes
“Netflix reported a second-quarter EPS beat of $0.80 but missed revenue forecasts, causing an 8.58% after-hours stock plunge.”
“Management maintains a 13-14% full-year revenue growth outlook, emphasizing margin expansion and new revenue streams like live events.”
“operated as a "logging company" recording billions of user actions daily, including from children's profiles”
“which it argues constitutes an unlawful sale of personal data without consent”