Netflix earnings numbers are always highlighly anticipated by media industry analysts and investors, given its size and influence in the streaming television business.
Before Thursday's call, I set out three tests for Netflix's second quarter: what happened to viewing hours, whether management would argue that raw hours understate the value of its audience and whether a free, advertising-funded version of Netflix would enter the discussion. The call answered all three, one of them almost word for word.
Streaming giant Netflix anticipates content spending (of about $20 billion) will be up around 10% in 2026, accelerating from 8% increases over the last five years but below the 14% the company averaged over the past decade. Live, now a focus, will be about 5% of total.
Netflix reported earnings just above consensus, but the market found the result underwhelming given its valuation. NFLX is now growing earnings in the low teens, with next quarter guidance at 12% growth. The current price-earnings ratio of 20 appears excessive relative to the 12% growth rate, suggesting overvaluation.
The headline numbers for Netflix (NFLX) give insight into how the company performed in the quarter ended June 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Netflix (NFLX) came out with quarterly earnings of $0.8 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.72 per share a year ago.
Netflix Co-CEOs Ted Sarandos and Greg Peters used the company's second-quarter earnings interview to try to clear the air regarding prospects for M&A, strategic partnerships and FAST channels.
Netflix NASDAQ: NFLX executives said the company remains on track for its 2026 financial plan, pointing to continued subscription growth, pricing gains, rising advertising revenue and a broadening content strategy during the company's second-quarter earnings interview.
Wall Street is concerned that Netflix subscribers are spending less time with Netflix shows and movies. Netflix says investors shouldn't worry.
Netflix is facing competition from all corners of the entertainment industry.
Netflix has been in Wall Street's doghouse lately, and its Thursday afternoon earnings commentary sparked even more investor concern.
Netflix Inc (NASDAQ:NFLX, XETRA:NFC) shares fell about 8% in after-hours trading after the streaming company reported second-quarter revenue that came in just below Wall Street expectations, overshadowing a slight earnings beat. For the quarter ended June 30, Netflix posted diluted earnings per share of $0.80, ahead of the consensus estimate of $0.79.