Netflix forecasts sharply slower growth in Q3, sending shares down more than 8% in after-hours trading.
The streaming giant said Thursday it expects revenue and profit gains to moderate in the third quarter, intensifying investor worries that its rapid expansion is peaking. Netflix projected revenue growth of just 11.7% for the period — the smallest year-on-year increase since late 2023.In the second quarter, Netflix reported revenue of $12.56 billion, up more than 13% from a year earlier, with net income rising nearly 9% to $3.4 billion. The results met analysts’ expectations, helped by recent price hikes and advertising growth.
On an earnings call, executives pushed back against concerns, stressing significant untapped potential. “We believe that we have lots and lots of runway ahead of us,” said Chief Financial Officer Spencer Neumann, noting that Netflix holds only about 5% of global TV market share.Viewers watched more than 97 billion hours of Netflix content in the first half of 2026, up 1.5% from the second half of 2025 and 1.9% from the first half of 2025.
The quarter also benefited from strong debuts such as Harlan Coben’s “I Will Find You” and the second season of Beef.
Netflix said subscriber growth contributed to results but has stopped disclosing quarterly subscriber numbers. Last week, it began testing free trials for new users in select markets.
The company also announced it will now release its detailed “What We Watched” viewing report annually instead of twice a year.