Netflix reports higher profits as investors worry about growth

Netflix connected Thursday reported higher revenues and nett successful the 2nd 4th arsenic it sought to guarantee investors astir its maturation prospects.

The streaming elephantine reported gross of $12.6 cardinal successful the 2nd quarter, up 13% from a twelvemonth ago. Net income during the play roseate 9% to $3.4 billion.

Netflix said it expects gross to turn 12% successful the 3rd quarter, but lowered its 2026 gross forecast to $51 cardinal from $51.4 billion.

The results were astir successful enactment with what analysts had predicted and were driven by caller terms summation and maturation successful advertizing revenue. The second is expected to scope $3 cardinal this year, the institution said.

In a presumption with analysts, Netflix executives touted planetary enlargement plans.

“We’re entertaining an assemblage approaching a cardinal radical with inactive tons of country to turn into our addressable marketplace connected each measure,” said Spencer Neumann, Netflix’s main fiscal officer, successful the net presentation. “We judge we’ve got tons and tons of runway for coagulated maturation up of us.”

Those comments appeared intended to assuage investors who’ve grown acrophobic that radical could beryllium spending little clip connected the streaming work arsenic rivals similar YouTube summation marketplace share.

Netflix’s stock of TV viewing clip successful the U.S. has steadily declined successful caller months arsenic rivals person gained marketplace share, according to Nielsen data.

The streamer represented 7.8% of each TV viewing successful the U.S. successful April — the lowest percent since May 2025. It was 7.5% successful April 2025, Nielsen said.

By comparison, YouTube has seen its stock of the streaming assemblage grow. YouTube’s TV viewing stock successful April roseate to 13.4%, up from 12.4% a twelvemonth earlier, Nielsen said.

Some investors fearfulness that if viewership is down, subscribers could cancel the service, which would negatively impact the platform’s increasing advertizing business. It could besides undercut Netflix’s quality to rise prices successful the U.S. and different countries.

Those worries person caused Netflix’s banal terms to plummet 41% successful the past year. The banal closed connected Thursday astatine $74.35 a share, up 1%. In aft hours trading, the banal fell 8%.

“The engagement elephant continues to rear its caput and investors are connected borderline that an earlier terms hike successful a seasonally pugnacious play and lighter contented slate could person driven much churn than usual,” wrote Morgan Stanley Research analysts successful a probe note.

On Thursday, Netflix said successful a missive to shareholders it has a blase knowing of its consumers and “we cognize not each hours are equal” and that engagement connected its level is “healthy.”

“The amusement manufacture remains dynamic and competitive,” Netflix told shareholders. “We purpose to enactment up by executing against our 3 areas of focus: delivering much amusement value, leveraging exertion to amended each facet of our service, and improving monetization.”

The Los Gatos-based institution said it plans to allocate much than 5% of its contented walk connected unrecorded programming this year. Live contented has been a cardinal operator for subscriptions, accounting for six of the apical 10 caller subordinate sign-up days implicit the past 5 years, the institution said.

In the archetypal fractional of 2026, Netflix said members watched much than 97 cardinal hours, up 2% from a twelvemonth ago. Among the astir fashionable shows: the transgression thriller “I Will Find You,” which had 87 cardinal views; and the romanticist drama movie “Voicemails for Isabelle,” which garnered 71 cardinal views.

Netflix has been adding caller types of contented to its platform, including video podcasts to assistance summation engagement with subscribers during the day.

As portion of the diversification efforts, the level has expanded its portfolio of unrecorded programming implicit the years, including adding NFL games and streaming Major League Baseball’s opening time game.

In 2022, Netflix had besides faced capitalist unit erstwhile it reported declining subscribers for the archetypal clip successful much than a decade. That pushed the institution to delve into different areas including advertising, gaming and cracking down connected password sharing.