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Netflix shares drop 8% after Q2 revenue slightly misses expectations despite earnings beat

Company Fundamentals
16 Jul 2026
Proactive Investors
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Bearish
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Netflix reported Q2 revenue of $12.56 billion, just below analyst expectations of $12.58 billion, causing shares to fall 8% in after-hours trading. Earnings per share beat estimates at $0.80 versus $0.79 expected. Revenue growth was driven by membership gains, pricing, and advertising, with strong regional performance and increased viewing hours despite sports event competition. Netflix forecasts Q3 revenue of $12.86 billion and maintains its 2026 outlook with expected revenue growth of 13-14% and a 31.5% operating margin.

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