Earnings Miss and Reduced Transparency
For the second quarter, Netflix posted revenue of $12.56 billion, up 13% year over year but narrowly missing the consensus estimate of $12.58 billion. Operating margin came in at 33.4%, down from 34.1% a year earlier. Earnings per share of $0.80 beat forecasts, buoyed by titles including the crime drama “I Will Find You” and animated film “Swapped”. Nnypost
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In a move that unnerved investors, Netflix announced it would shift from releasing viewing-hours reports twice a year to just once annually, beginning in January 2027. The company had already stopped publishing quarterly subscriber figures in 2025. At least 11 analysts lowered their price targets following the report. AAawsat
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A Deepening Slide
The selloff extends a punishing year for Netflix shareholders. Year to date, the stock is down roughly 30%, according to CNBC. The shares have lost more than 44% since hitting an all-time closing high of $133.91 in June 2025, Reuters reported. Rreuters
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Despite the stock weakness, Netflix repurchased approximately $4.7 billion in shares during the quarter — its largest quarterly buyback on record, according to Fortune. The company’s ad-supported revenue is projected to reach $3 billion in 2026, but analysts have expressed concern that the second half of the year lacks a compelling content slate to drive engagement. Ffortune
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Outlook Remains Uncertain
Netflix now trades well below the analyst consensus price target of $114, which as of late June reflected 29 buy ratings, 8 outperform ratings, and 13 holds across 44 estimates. The gap between that target and the current share price suggests analysts may need to further recalibrate expectations as revenue growth decelerates and the company reduces the data it shares with the market. Ttikr
