Netflix Plunges, Analysts React to Disappointing Guidance

NFLX shares fell as much as 12% before settling down roughly 9% after the streamer's Q2 2026 print, as forward guidance overshadowed an in-line quarter. Revenue rose 13.4% year over year to $12.56 billion and net income reached $3.4 billion, or $0.80 per share, essentially matching Wall Street's $12.59 billion and $0.79 estimates.

The selloff was driven by the outlook: Netflix guided Q3 revenue growth of 11.7% to $12.86 billion, undershooting the roughly $13 billion analysts had modeled, and narrowed full-year guidance to $51.0-$51.4 billion. Management also said it will report its "What We Watched" engagement data annually rather than semiannually starting in 2027, feeding concerns about decelerating growth after a more than 21% year-to-date decline into the print.

The disappointment rippled into an already-weak tech tape, with chip names extending losses the same session. For traders, the key questions are whether Netflix's growth deceleration is structural or a tough comp, and whether ad-tier monetization and password-sharing gains can re-accelerate revenue into 2027.

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